Chilllax Moving Averages with Qullamaggie colors

The Chilllax Moving Averages with Qullamaggie colors indicator provides a dual moving average system enhanced with a logic-based background coloring scheme to help traders identify trend strength and alignment.

Usage

The Usage section describes how the script can be used to identify trend phases based on the relationship between two moving averages and their respective trajectories.

Traders typically use this tool to identify "Qullamaggie-style" setups where the short-term moving average (default 10-period) is above the medium-term moving average (default 20-period). The background highlights three specific bullish states:

• Strong Momentum (Dark Green): Occurs when the first MA is above the second MA, and both averages are sloping upward relative to their position $n$ bars ago.
• Decelerating Momentum (Light Green): Occurs when the first MA is above the second MA, but only the short-term average is sloping upward.
• Neutral/Weakening Momentum (Yellow): Occurs when the first MA remains above the second MA, but neither average is currently sloping upward.

If the first moving average falls below the second, or if the user chooses to disable background elements, the script functions as a standard dual-MA overlay.

Details

The script calculates two moving averages (SMA or EMA) based on user-defined lengths and source inputs. The core logic hinges on the "Trend Length" setting, which determines the slope of the averages.

An uptrend for a specific moving average is confirmed if its current value is greater than its value from a specified number of bars ago (default is 5). This lookback approach filters out minor tick-by-tick fluctuations, providing a smoother representation of trend direction compared to simple bar-by-bar comparisons. The visual output is designed to highlight period of "alignment" where price action is supported by rising averages, a key component in breakout and momentum trading strategies.

Settings

Moving Averages Type

• MA Type: Selects the calculation method for both moving averages (SMA or EMA).
• First MA length: Sets the period for the short-term moving average (default is 10).
• OHLC 1: Determines the price source (Close, Open, High, Low) for the first MA.
• Second MA length: Sets the period for the medium-term moving average (default is 20).
• OHLC 2: Determines the price source for the second MA.

Trend Configuration

• Number of bars to determine uptrend: Sets the lookback period ($n$) used to compare the current MA value against its historical value to determine if it is trending upward.

FAQ

How is the "uptrend" of a moving average calculated?
The script compares the current value of the moving average to its value from a specific number of bars ago (defined by the Trend Length setting). If the current value is higher, it is considered trending up.

Can I use this for EMA-based strategies?
Yes, the "MA Type" setting allows you to toggle between Simple Moving Averages (SMA) and Exponential Moving Averages (EMA) depending on your preference for responsiveness.

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