Adam Khoo Moving Averages

The Adam Khoo Moving Averages indicator provides a comprehensive trend-following toolkit by plotting specific simple and exponential moving averages across multiple timeframes to identify high-probability buying and selling opportunities.

Usage

The Adam Khoo Moving Averages indicator is primarily designed for daily chart analysis, though it offers flexibility for various trading styles. Users can monitor current timeframe moving averages alongside hard-coded weekly moving averages to maintain a high-level perspective on long-term trends regardless of the active chart interval.

• Trend Identification: A "Strong Uptrend" or "Strong Downtrend" is identified when all six moving averages are stacked in sequential order (20 > 40 > 50 > 100 > 150 > 200 for uptrends, and vice versa for downtrends).
• Multi-Timeframe Analysis: By enabling weekly moving averages, traders can ensure they are trading in the direction of the macro trend while managing entries on shorter timeframes.
• Visual Dashboard: An on-screen label provides real-time values for all active moving averages and explicitly flags strong trend conditions for both the current and weekly timeframes.

Details

The script utilizes two types of moving averages: Exponential Moving Averages (EMA) for faster responsiveness to recent price changes, and Simple Moving Averages (SMA) for identifying significant institutional support and resistance levels.

The indicator calculates twelve distinct values:

1. Current Timeframe: EMA 20, EMA 40, SMA 50, SMA 100, SMA 150, and SMA 200.
2. Weekly Timeframe: EMA 20, EMA 40, SMA 50, SMA 100, SMA 150, and SMA 200, fetched via security requests.

To maintain chart clarity, the weekly averages are plotted with thinner lines, while the current timeframe averages use thicker lines. The indicator also features built-in alert conditions for EMA crossovers and the initiation of strong trend sequences.

Settings

• EMA1 / EMA2: Sets the length for the two Exponential Moving Averages (Default: 20, 40).
• SMA1 - SMA4: Sets the length for the four Simple Moving Averages (Default: 50, 100, 150, 200).
• Show current timeframe moving averages: Toggles the visibility of averages calculated on the active chart interval.
• Show weekly moving averages: Toggles the visibility of the hard-coded weekly moving averages.
• Label offset to the right: Adjusts the horizontal position of the data label relative to the current bar.
• Label Background Color: Customizes the background color of the on-screen information dashboard.

FAQ

How do I interpret the "Strong Trend" labels? The labels appear when price action aligns with the Adam Khoo methodology, specifically when all moving averages are perfectly fanned out in order, signaling a robust directional momentum.

Can I use this on intraday timeframes? Yes, while optimized for the daily chart, the tool remains functional on intraday scales; the "current" averages will adapt to your chart, while the "weekly" averages will continue to provide macro context.

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