Daily/MTF Moving Averages (EMA20, EMA55, SMA50, SMA100, SMA200)

The Daily/MTF Moving Averages indicator projects common high-timeframe moving averages onto lower-resolution charts to identify institutional support and resistance levels.

Usage

The Usage section describes how the script can be used to maintain perspective on broader market trends while trading on lower timeframes. For example, a trader using a 5-minute chart can monitor the Daily SMA 200 to identify major trend exhaustion or bounce points without switching tabs.

This indicator is primarily used for:

• Trend Filtering: Determining the primary market direction based on the position of price relative to the selected MTF averages.
• Support and Resistance: Utilizing historically significant averages like the SMA 50, 100, and 200 as potential zones for price reversals or breakouts.
• Momentum Analysis: Comparing short-term averages (EMA 9, EMA 20) against long-term averages to gauge momentum shifts across timeframes.

Details

The script utilizes the request.security function to fetch data from higher timeframes (such as Daily or Weekly) and plots them on the current chart. To ensure visual clarity and reduce the "stair-step" effect common with multi-timeframe indicators, a linear regression smoothing function is applied to the fetched values.

The tool includes a variety of moving average types:

• Simple Moving Averages (SMA): 50, 100, and 200 periods for long-term trend identification.
• Exponential Moving Averages (EMA): 9, 20, and 55 periods for more responsive, medium-term trend tracking.
• Least Squares Moving Average (LSMA): A 25-period LSMA is included to provide a curve that minimizes the sum of squared differences between price and the moving average.

Settings

• Show Labels: Toggles the visibility of text labels at the end of each line for easy identification of the specific moving average.
• Source: Selects the price data point used for calculations (default is Close).
• Timeframe (minutes/D/W): Defines the external resolution from which the moving averages are calculated (options include 60, 240, 720, Daily, and Weekly).
• SMA/EMA/LSMA Toggles: Individual checkboxes to enable or disable the SMA 200, SMA 100, SMA 50, EMA 55, EMA 20, EMA 9, and LSMA 25.

FAQ

How do I change the timeframe of the moving averages?

You can modify the "Timeframe" setting in the indicator inputs to switch between hourly, daily, or weekly perspectives regardless of your current chart resolution.

Can I set alerts for price crosses?

Yes, the script includes built-in alert conditions for price crossing the SMA 200, which can be configured through the standard alert menu.

How do I access the Daily/MTF Moving Averages?

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