Bars Since MA Cross Can Help Trend Following

The Bars Since MA Cross indicator counts the number of bars since a crossover between two moving averages, providing a visual representation of trend duration and maturity.

Usage

The Bars Since MA Cross indicator is primarily used to identify the "age" of a market trend. Unlike standard moving average crossovers that simply show the point of change, this tool tracks how long a specific condition has persisted.

• Positive Values: When the fast moving average is above the slow moving average, the indicator plots positive values (green bars/area), indicating the length of the bullish phase.
• Negative Values: When the fast moving average is below the slow moving average, the indicator plots negative values (red bars/area), indicating the length of the bearish phase.
• Identifying Divergences: Traders can look for decreasing peaks in the bar count during successive price highs or lows, which may suggest a weakening trend.
• Trend Maturity: Exceptionally high or low readings relative to historical norms can signal that a move is "long in the tooth" and may be due for a reversal or consolidation.

Details

The script functions by calculating two user-defined moving averages and comparing their relative positions. Every time a crossover occurs, an internal counter resets to zero. As long as the relationship remains the same (e.g., Fast > Slow), the counter increments (or decrements for bearish phases) by one for every new bar on the chart.

By default, the script utilizes an 8-period and 21-period Exponential Moving Average (EMA). However, the implementation allows for mixing different types of averages, such as comparing a fast WMA against a slow SMA, offering flexibility for various trend-following strategies.

Settings

Fast Average

• Length: Sets the period for the fast-moving average (minimum 2).
• Price: Determines the source data (e.g., close, open, hl2) for the fast average.
• Method: Selects the calculation type (SMA, EMA, SMMA, WMA, or VWMA).

Slow Average

• Length: Sets the period for the slow-moving average (minimum 2).
• Price: Determines the source data for the slow average.
• Method: Selects the calculation type (SMA, EMA, SMMA, WMA, or VWMA).

Color Settings

• Above Zero Color: Sets the color for bullish trend duration.
• Below Zero Color: Sets the color for bearish trend duration.
• Transparency Percent: Adjusts the transparency level of the plotted area.

FAQ

How do I access the Bars Since MA Cross indicator?

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

Can I use different types of moving averages together?

Yes, the indicator allows you to independently select the method for both the fast and slow averages. For example, you can compare an 8-period EMA to a 21-period SMA.

Does the counter reset automatically?

The counter resets to zero whenever a "Bullish Cross" (Fast crosses over Slow) or a "Bearish Cross" (Fast crosses under Slow) is detected.