Triple Simple Moving Averages

The Triple Simple Moving Averages indicator plots three independent simple moving averages (SMA) within a single script to help traders identify trend direction and potential crossover signals without exceeding indicator limits.

Usage

The Triple Simple Moving Averages tool is primarily used for trend identification and multi-timeframe analysis. By plotting three distinct SMAs (traditionally short, medium, and long-term), users can visualize the market's momentum.

• Trend Identification: When the price remains above the SMAs, the market is generally considered to be in an uptrend. Conversely, price action below the SMAs suggests a downtrend.
• Crossover Analysis: Traders often look for "Golden Crosses" (short-term MA crossing above a long-term MA) as bullish signals or "Death Crosses" (short-term MA crossing below a long-term MA) as bearish signals.
• Support and Resistance: These moving averages can act as dynamic support or resistance levels during trending markets.

Users can toggle the second and third SMAs on or off depending on their specific strategy requirements.

Details

The script calculates three separate Simple Moving Averages based on the arithmetic mean of a selected price source over a specific number of periods. Unlike Exponential Moving Averages (EMA), the SMA assigns equal weight to every data point in the lookback period, resulting in a smoother line that is less sensitive to short-term price spikes.

This implementation is an adaptation of concepts by AdventTrading and Owen Garland, optimized for modern charting platforms. It includes built-in alert conditions for crossovers between the first and second SMA, as well as the second and third SMA, allowing for automated monitoring of trend shifts.

Settings

• Enable 2nd MA: Toggles the visibility and calculation of the second simple moving average.
• Enable 3rd MA: Toggles the visibility and calculation of the third simple moving average.
• Length 1/2/3: Sets the lookback period (number of bars) used to calculate each respective SMA.
• Source 1/2/3: Determines the price data used for the calculation of each SMA (e.g., Open, High, Low, Close).

FAQ

How do I use the crossover alerts? Alerts are triggered when SMA 1 crosses SMA 2, or when SMA 2 crosses SMA 3. Ensure the respective moving averages are enabled in the settings for the alerts to function correctly.

Can I change the colors of the moving averages? Yes, the colors and line thickness can be adjusted within the "Style" tab of the indicator settings on your charting platform.

How do I access the Triple Simple Moving Averages indicator? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.