Trend System Multiple Moving Averages Rating

The Trend System Multiple Moving Averages Rating indicator calculates an aggregate trend score by synthesizing 17 different moving average types into a single rating system to identify high-probability momentum in trending markets.

Usage

The Usage section describes how the script can be used to identify trend strength and direction across various asset classes like stocks and cryptocurrency.

• Trend Identification: The indicator plots a thick average line on the chart. When the price is above this average and the line turns green, it indicates a bullish trend. Conversely, when the price is below and the line turns red, it indicates a bearish trend.
• Rating System: A dashboard displays a rating between -100 and 100. A rating of 100 suggests all 17 moving averages are signaling a long position, while -100 suggests all averages are signaling a short position.
• Confirmation: Traders can use the rating to filter out "noisy" markets. For example, a rating near 0 indicates a sideways market where moving averages are in conflict.

Details

The script executes a comprehensive calculation of various moving average methodologies to provide a diversified view of price action. By averaging these results, the indicator reduces the lag inherent in single moving averages while smoothing out the volatility of faster variants.

The system includes the following moving average types:

• Simple (SMA), Exponential (EMA), and Weighted (WMA)
• Volume Weighted (VWMA) and Smoothed (SMMA)
• Double (DEMA) and Triple (TEMA) Exponential
• Arnaud Legoux (ALMA) and Hull (HMA)
• Least Squares (LSMA) and Kaufman Adaptive (KAMA)
• Zero Lag (ZLEMA) and Fractal Adaptive (FRAMA)
• Variable Index Dynamic Average (VIDYA)
• Jurik Moving Average (JMA), Tillson (T3), and Triangular (TRIMA)

Settings

The settings are categorized by calculation parameters and visual preferences:

• Length 1: Determines the lookback period for all 17 moving average calculations.
• Position: Adjusts the location of the rating dashboard on the chart (e.g., Top Right, Bottom Left).
• Text Size: Changes the font size of the information displayed in the dashboard.
• Table Width: Manages the horizontal scaling of the dashboard.

FAQ

Which timeframes are most effective for this indicator? The tool is designed to work on any timeframe, though it is particularly effective on higher timeframes (Daily or 4H) for identifying major trends in stocks and crypto.

What does a rating of 0 mean? A rating of 0 indicates a neutral state where approximately half of the moving averages are bullish and half are bearish, typically seen during consolidation phases.

How do I get access to the Multiple MA Rating? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.