Daily Moving Averages on Intraday Chart

The Daily Moving Averages on Intraday Chart indicator plots three customizable daily Simple Moving Averages (SMA) onto lower-timeframe charts to provide institutional-level trend context for intraday trading.

Usage

The indicator is primarily used to identify daily trend bias and potential levels of institutional support or resistance while viewing 1-minute, 5-minute, or 1-hour charts. By visualizing the 200-day, 50-day, and 20-day SMAs, traders can align their short-term entries with long-term market structures.

Trend Identification

Traders can use the position of the current price relative to the daily SMAs to determine market sentiment. For example, price remaining above the 200-day SMA typically suggests a long-term bullish environment, whereas price staying below it suggests a bearish environment.

Support and Resistance

The daily SMAs often act as significant price floors or ceilings. This tool allows users to anticipate price reactions as the intraday price approaches these daily levels, providing opportunities for mean reversion or breakout strategies.

Alerts

The script includes built-in alert conditions for price crossovers. Users can set notifications to trigger when the intraday price crosses above or below any of the three configured daily moving averages.

Details

The script utilizes the request.security function to pull data from the daily resolution ('D') regardless of the chart's current timeframe. It calculates the Simple Moving Average based on the closing prices of the daily candles. Because the data is sourced from a higher timeframe, the moving average values will appear as horizontal steps on an intraday chart, updating only when a new daily bar is completed. This implementation is based on the original script by @CaptainBrett.

Settings

• Long Term Daily SMA: Defines the lookback period for the long-term daily moving average (Default: 200).
• Medium Term Daily SMA: Defines the lookback period for the medium-term daily moving average (Default: 50).
• Short Term Daily SMA: Defines the lookback period for the short-term daily moving average (Default: 20).

FAQ

Why do the moving averages appear as flat lines? The lines represent daily values. On an intraday chart, the value of a daily SMA remains the same for every bar within that specific day, resulting in a "stepped" or flat appearance until the next daily candle closes.

Can I use these SMAs on any intraday timeframe? Yes, the script is designed to function on any timeframe lower than the Daily (D) resolution, such as the 1m, 5m, 15m, or 1h charts.

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