Daily Moving Averages

The Daily Moving Averages indicator projects high-timeframe simple moving averages onto lower intraday timeframes using a mathematical approximation to ensure smooth visual transitions and real-time responsiveness.

Usage

The Usage section describes how the script can be used to identify trend direction and potential reversal points on intraday charts. Traders can monitor the interaction between current price action and the 20, 50, and 100 daily moving averages without the "stepped" or "jagged" appearance typical of multi-timeframe indicators.

The tool includes a specific "MA Bounce" feature. When enabled, the indicator identifies instances where the price tests a daily moving average but fails to close beyond it, followed by a confirmatory candle moving away from the average. These are marked with "M" labels (representing Moving Average Bounce) on the chart:

• Bullish Bounce: Occurs when the low of a candle crosses under the MA but the candle closes above it, followed by a bullish confirmation.
• Bearish Bounce: Occurs when the high of a candle crosses over the MA but the candle closes below it, followed by a bearish confirmation.

Details

The script avoids the standard request.security() function to prevent the jagged lines associated with displaying daily values on intraday intervals. Instead, it calculates a multiplier based on the current timeframe's relationship to the daily resolution (1440 minutes).

By scaling the moving average length relative to the intraday chart's density, the indicator produces a continuous line that updates with every price movement. For example, on a 60-minute chart, the script calculates a 20-day MA by using a 480-period length (20 days * 24 hours). This implementation provides a more granular view of how intraday price action interacts with daily institutional levels.

Settings

• MA Bounce Labels: Toggles the visibility of label markers on the chart when a price "bounce" or "rejection" is detected at a daily MA level.
• Daily Slow EMA: Sets the length for the first daily moving average (defaulted to 20).
• Daily Mid EMA: Sets the length for the second daily moving average (defaulted to 50).
• Daily Fast EMA: Sets the length for the third daily moving average (defaulted to 100).
• Source: Determines the price data used for the moving average calculations (e.g., Close, Open, High, Low).

FAQ

How do I interpret the "M" labels on the chart? The "M" labels indicate a confirmed "bounce" off one of the three daily moving averages. A label below the bar suggests a bullish rejection of the MA, while a label above the bar suggests a bearish rejection.

Why are the lines smooth instead of stepped? The script uses a custom calculation that scales the length based on the current intraday timeframe rather than fetching static daily data, allowing the line to plot a value for every single intraday bar.

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