Decam9

Dynamic Moving Averages

This indicator uses what I call Dynamic Moving Averages to identify trends. The reason these moving averages are dynamic is that they track different sources based on the trend. Allow me to explain...

Low = identifies the least sellers were willing to sell for in a given period.
High = Identifies the most buyers were willing to buy for in a given period.

Avg Low = Shows the least sellers were willing to sell for over several periods.
Avg High = Shows the least buyers were willing to buy for over several periods.

If, in an uptrend, the closing price closes below the Avg Low, a trend change could be coming to the downside. If, in a downtrend, the closing price closes above the Avg high, a trend change could be coming to the upside.

This indicator uses a single moving average to identify the trend. If price is above this MA, we are in an uptrend. Below it, we are in a downtrend. I recommend using that 50 length as your trend. Any moving averages that are Dynamic, will track the low when above the Trend MA and track the High when below the trend MA.

When Price crosses a Dynamic Moving Average, the trend is likely changing. I recommend using 3 MAs at a time (trend + 2 shorter MAs), but I have provided 7 in total.

סקריפט קוד פתוח

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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