Signal Moving Average
By LuxAlgoSep 12, 2022
Signal Moving Average is an indicator on Vela, our next-generation charting platform, written in Pine Script®.
The Signal Moving Average exists for one job: being the slower half of crossover systems. In a trending market it behaves like a standard moving average of the same period; in a ranging market it deliberately diverges away from price. That single behavior attacks the crossover trader's worst enemy (the cluster of meaningless crosses that congestion produces), because a line standing apart from the chop simply cannot be crossed as often.
How to Trade the Signal Moving Average?
- Green fill between price and line: price is above the signal line. The shaded area gives the bullish/bearish read at a glance.
- Price crossing the line: with range-born crosses suppressed, a cross that does occur carries more weight than the same event on a plain average.
- Line color: the signal line only recolors once a clear trend emerges, and it holds its last trend color through ranges, so the color shows the latest trend reading, not whether the market is ranging.
- Pair it with a faster average: run it as the signal leg beneath a quicker moving average to refine entries.
Set against a simple moving average of the same period, the design's cumulative count of price/line intersections grows far more slowly through choppy stretches, exactly the crossings that rack up transaction costs without ever producing a trend.
Signal Moving Average Settings
- Length: the moving average period.
- Src: the source series the average is computed on.
Frequently Asked Questions
Free to use
Run it on Vela. Go further with a paid plan.
- Up to 500 Custom Alerts, with webhook automation
- Up to 10× the chart history of Free
- Orderflow lookback up to full history
- More Quant usage to customize it, plus extra usage when you need it
- Futures data alongside crypto, stocks, forex and commodities
Also works on
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All 3 Moving Average Crossovers indicators
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Open this indicator free on Vela, our next-generation charting platform. Then ask Quant, our coding agent built into Vela, to retune it or turn it into a backtested strategy of your own.