Trend Following MAs 3D

The Trend Following MAs 3D indicator provides a visual representation of trend direction and strength by analyzing the relationship between multiple moving averages ranging from 5 to 100 periods.

Usage

The indicator is used to identify the prevailing market trend and its current momentum.

• Uptrend: When the 3D ribbon expands and moves upward, it indicates a bullish trend. Green shades represent positive momentum.
• Downtrend: When the 3D ribbon expands and moves downward, it indicates a bearish trend. Red shades represent negative momentum.
• Trend Strength: The thickness of the ribbon reflects the strength of the trend. A "tiny" or thin ribbon suggests a lack of trend or a period of consolidation.
• Reversals: Changes in the ribbon's direction and color can signal potential trend reversals.

Details

The script calculates 20 different moving average values using a specified type (EMA, SMA, etc.). It determines the "3D" effect by calculating the differences between successive moving average periods. To smooth the output and reduce noise, users can optionally apply a Linear Regression filter to the moving average calculations. The color transparency is dynamically adjusted based on the calculated trend width, providing a gradient effect that highlights momentum intensity.

Settings

• MA Type: Determines the base calculation for the moving averages (EMA, SMA, RMA, WMA, or VWMA).
• Use Linear Regression: When enabled, applies a linear regression calculation to the moving averages for smoother plotting.
• Linear Regression Period: Sets the lookback period used for the linear regression smoothing.

FAQ

How do I interpret the colors of the ribbon?

Green shades indicate a bullish environment, while red shades indicate a bearish environment. The darker and more solid the color, the stronger the current trend width.

What does it mean when the ribbon becomes very thin?

A very thin ribbon indicates that the various moving average periods are converging, which typically suggests a sideways market or a lack of a clear trend.

How can I access Trend Following MAs 3D?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.