Moving Averages Proximity Oscillator

Moving Averages Proximity Oscillator evaluates every simple moving average between two user-set lengths — an entire MA ribbon condensed into two lines. The first output counts how many of those SMAs price currently exceeds, optionally normalized to a 0-100 percentage; the second, the Proximity Index, reports which moving average period sits closest to price. Together they read trend strength and reversal risk from the same span of averages.

How to Trade the Moving Averages Proximity Oscillator?

• Price Above MA's high or rising: price is clearing most of the measured SMAs — a broad, intuitive gauge of trend strength and direction. Longer length ranges describe the long-term trend; shorter ranges track immediate momentum.
• Proximity Index climbing: price is gravitating toward longer-period SMAs — the signature of a fading move and a cue that a new trend may be forming, rather than a directional signal in itself.
• Read the pair together: direction from the first output, turn risk from the second; strong trend readings paired with a rising Proximity Index are an early warning worth respecting.

In spirit it is a cousin of the Disparity Index: both quantify price's relationship to its averages, but here the whole length spectrum is polled at once instead of a single MA.

Moving Averages Proximity Oscillator Settings

• Minimum Length: the shortest SMA period included in the span.
• Maximum Length: the longest SMA period under analysis.
• Smooth: smooths both outputs to taste.
• Normalized: converts raw counts into a 0-100 percentage scale for easier reading.
• Src: the input source the calculations run on.

Frequently Asked Questions

How is this different from just plotting a ribbon?

A plotted fan shows you the averages; this oscillator scores price against all of them and hands you the summary. If you would rather see the stack itself on the chart, the GMMA ribbon draws the classic layered-average view this tool distills into two numbers.

What does a high Proximity Index actually mean?

It means the SMA nearest to price is a long-period one — price has pulled away from the short averages and is reverting toward slower ones. That pattern tends to accompany the end of one move and the incubation of the next, which is why the output is read as a reversal cue.

How do I access the Moving Averages Proximity Oscillator?

It is free to use via the LuxAlgo Library, and you can load it into LuxAlgo's AI, Quant, from this page to explore length ranges on your own charts.