7 Moving Averages

The 7 Moving Averages tool provides a comprehensive multi-layered analysis environment by combining seven customizable moving averages with advanced volatility bands, forecasting, and trend-following strategies.

Usage

The Usage section describes how the script can be used to interpret market trends and momentum. Users can deploy up to seven moving averages (MA0 through MA6) to define support and resistance zones. The tool includes specialized coloring strategies like the "3-MA," "SuperTrend," or "Ichimoku Trend" to visually indicate trend shifts directly on the primary averages.

The script also features a forecasting toggle for MA1, MA2, and MA3, which projects potential price paths based on historical data. For multi-timeframe analysis, MA4, MA5, and MA6 include resolution settings, allowing traders to plot weekly or monthly averages on a daily chart. Additionally, the Bollinger Bands and Keltner Channel overlays assist in identifying volatility breakouts or overextended price conditions.

Details

The script is constructed to offer high flexibility in technical calculations. It supports over 30 different moving average types, including Zero-Lag SMA (ZSMA), McGinley Dynamic, Hull Moving Average (HMA), and Jurik Moving Average (JMA).

Key technical implementations include:

• Linear Regression Channel: Calculated on a logarithmic basis to maintain accuracy over long time horizons, providing a median trend line with standard deviation boundaries.
• Forecasting: Uses the selected MA type and source to extrapolate potential future values, helping traders anticipate trend Exhaustion or continuation.
• Parabolic SAR: Integrated as a stop-and-reverse mechanism to identify potential exit points during trending markets.
• Volume Weighted Colored Bars: Color-codes price bars based on volume intensity relative to a moving average, highlighting high-conviction moves.

Settings

Moving Averages (MA1 - MA6)

• Visible: Toggles the visibility of the specific moving average.
• Period: Sets the lookback window for the calculation.
• Type: Selects the mathematical algorithm (e.g., SMA, EMA, WMA, HMA, JMA).
• Source: Determines the price data used (Close, Open, HL2, VWAP, etc.).
• Resolution: (MA4-6 only) Allows the average to be calculated from a different timeframe than the current chart.
• Offset: Shifts the moving average plot forward or backward in time.

Strategies & Forecasting

• Strategy Color: Changes MA1 or MA2 color based on 3-MA crossovers, SuperTrend logic, or Ichimoku signals.
• Show Forecasts: Projects the trajectory of the first three moving averages.
• Forecast Bias: Adjusts the projected trend bias between Neutral, Bullish, or Bearish.

Volatility & Trend Tools

• Bollinger Bands: Adjusts length and standard deviation multipliers for volatility envelopes.
• Keltner Channel MultFactor: Sets the multiplier for ATR-based bands.
• Parabolic SAR: Configures the Start, Increment, and Maximum acceleration factors for the PSAR dots.
• Linear Regression Count: Sets the number of bars used to calculate the regression channel.

FAQ

How do I use the forecasting feature? Enable the "Show Forecasts" setting in the inputs menu. The script will project MA1, MA2, and MA3 forward, which can be further adjusted using the "Forecast Bias" setting to align with your market outlook.

Can I view weekly moving averages on a 1-hour chart? Yes. Use MA4, MA5, or MA6 and set the "MA Res" (Resolution) setting to "12 1W" to plot weekly data on any lower timeframe.

How do I access the 7 Moving Averages? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.