BUY/SELL SIGNALS from LSMA/ALMA/HMA

The BUY/SELL SIGNALS from LSMA/ALMA/HMA indicator is a trend-following tool that combines the Least Squares Moving Average (LSMA), Arnaud Legoux Moving Average (ALMA), and Hull Moving Average (HMA) to identify precise entry and exit points through smoothed price action analysis.

Usage

The indicator provides visual cues for trend direction and potential reversals. When the "Combine" logic is active, the main plot changes color based on the consensus of the three moving averages:

• Bullish Signal: A light blue (green) cross appears at the top of the chart when all three averages align upward, indicating a strong buying opportunity.
• Bearish Signal: An orange (red) cross appears when the averages align downward, suggesting a selling opportunity.
• Market Uncertainty: A neutral color (yellow/blue) indicates periods of uncertainty or potential reversal, warning traders to be cautious.

Traders can use the included 200 EMA to determine the primary trend and the modified VWAP to assess volume-weighted price levels. These secondary filters help in avoiding "fakeouts" during sideways market conditions.

Details

This tool leverages different mathematical approaches to smoothing price data:

• LSMA (Least Squares Moving Average): Uses linear regression to predict where the price "should" be, making it highly responsive to recent changes.
• ALMA (Arnaud Legoux Moving Average): Uses a Gaussian distribution to provide superior smoothness and reduced lag compared to standard moving averages.
• HMA (Hull Moving Average): Focuses on reducing lag while maintaining a smooth line.

By coupling a fast-period LSMA with slower ALMA and HMA components, the script attempts to filter out market noise while capturing trend shifts early. The "Modified VWAP" calculates a simple moving average of volume-weighted price over a user-defined length, offering a different perspective than the standard cumulative VWAP.

Settings

LSMA

• LSMAlen: Sets the period for the Least Squares Moving Average.
• Offset: Adjusts the displacement of the LSMA plot.

General

• smoother: The EMA period applied to the source price before calculation to further reduce noise.
• back: The lookback period used to determine if the indicator is rising or falling.

HMA

• HMAlen: Sets the period for the Hull Moving Average calculation.

ALMA

• Window Size: Determines the lookback period for the ALMA.
• Offset: Controls the smoothness (Gaussian offset) of the ALMA.
• Sigma: Controls the focus/width of the ALMA distribution.

Plot Toggles

• LSMA/ALMA/HMA: Choose which specific moving average to display as the main plot.
• Combine: When enabled, the plot color reflects the confluence of all three moving averages.

VWAP

• VWAPSOURCE: The source data (e.g., HL2) used for the modified VWAP calculation.
• VWAPLen: The period for the SMA applied to volume and price products.

FAQ

How do I use the signals provided by the indicator?

The crosses at the top of the chart represent trend confluence. A green/blue cross suggests a bullish entry when the averages align, while a red/orange cross suggests a bearish entry.

Why is the modified VWAP not appearing?

The modified VWAP requires volume data. If you are viewing a market where volume is not published (like some FX pairs or indices), the VWAP line will not function.

How can I get access to BUY/SELL SIGNALS from LSMA/ALMA/HMA?

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