Weekly Moving Average

The Weekly Moving Average indicator visualizes high-timeframe trend data by plotting a weekly simple moving average directly onto any intraday or daily chart to help traders identify major support, resistance, and long-term market bias.

Usage

The Weekly Moving Average is primarily used to determine the primary trend of an asset. Traders often monitor specific lengths, such as the 200-week moving average, as these are considered significant institutional levels.

• Trend Identification: When the price remains above the weekly moving average, the market is generally considered to be in a long-term uptrend. Conversely, price action below the line suggests a long-term downtrend.
• Dynamic Support and Resistance: During market pullbacks, the weekly moving average often acts as a floor (support). During relief rallies in a bear market, it can act as a ceiling (resistance).
• Crossover Signals: The indicator can be used to identify potential trend shifts when the price crosses the moving average. This script includes built-in alert functionality for both bullish crossovers and bearish crossunders.

Details

This indicator utilizes the request.security function to fetch data from the weekly ("W") resolution, ensuring that the moving average calculation remains consistent regardless of which timeframe the user is currently viewing. The script calculates a Simple Moving Average (SMA) based on the user-defined length and source. By projecting these weekly values onto lower-timeframe charts (such as the 1-hour or Daily), traders can maintain a "big picture" perspective without switching chart intervals. This implementation was originally authored by @TommyTompsen and has been refactored for improved visual performance and alert optimization.

Settings

• MA Length: Determines the lookback period (number of weeks) used to calculate the simple moving average.
• Source: Specifies the price data point from the weekly candles (such as Close, Open, High, or Low) used for the calculation.

FAQ

Why is the weekly moving average useful on intraday charts? It allows traders to see institutional-grade trend levels without leaving their preferred trading timeframe, helping to ensure that short-term trades align with the dominant long-term trend.

What is the significance of the 200-week moving average? The 200-week moving average is widely regarded by analysts as a "line in the sand" for long-term cycles, often marking the bottom of major market corrections or the start of secular bull markets.

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