OPEN-SOURCE SCRIPT
SMI MTF 4-Colored MAs (jkf)
Four linear moving averages of varying frequency. Reading the moving averages is an art. If looking at a Daily price chart (for example):
For bullish trades, I like to see the yellow (longest term) moving average moving higher, but timing can be improved by respecting the shorter term lines, especially the black (shortest term).
For further support of your hypothesis, switch the frequency to Weekly, and validate that is supportive as well.
Warning: "Lookahead" is set to on, so large price swings can alter prior day readings.
For bullish trades, I like to see the yellow (longest term) moving average moving higher, but timing can be improved by respecting the shorter term lines, especially the black (shortest term).
For further support of your hypothesis, switch the frequency to Weekly, and validate that is supportive as well.
Warning: "Lookahead" is set to on, so large price swings can alter prior day readings.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.