The SMA 200 is one of the most important and strongest support/resistance lines on any timeframe. This script pulls the SMA 200 line from multiple timeframes so traders can visually see price action bounce between support and resistance . The current timeframes SMA 200 is displayed in white and turns yellow to signify "pressure". Can be used on higher timeframes to find bull action. This indicator can also be used to filter out pumps and dumps as shown in example 3 and 4.
Example of indicator on 5 min timeframe. Candles bounce along SMA200 lines.
Example of indicator on daily timeframe . Lines turn green and price action pumps. Lines turn red and price action dumps.
Example 3: A clean crossover of lines usually signals a bullish pump.
Example 4: Tangled or messy lines tend to result in a dump as price action struggles to cross resistance. A pullback is required to "clean" the lines.
EMA Band can be turned on using "tickbox" in settings menu.
Hi great indicator. Is it possible just to plot the SMA200 by its self?
veryfid
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@CompoundTraders, Hi, you can hide the other lines in the style settings
CompoundTraders
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@veryfid, Thank you - awesome work and explanation!
veryfid
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@CompoundTraders, If you are only going to use the SMA line then it is better to use my crypto ema bands script. This ribbon script pulls data from other timeframes and will be slow to load as well as use resources for no reason.
kvinayaks
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Since the inputs src and ma_len is going to be the same for each htf_ma (i.e. sma(src, ma_len) do you think removing the lines to calculate sma for each htf_ma will save a few lines and make the script better?
veryfid
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@kvinayaks, Hi, Thanks for checking the code. I do a lot of development with multi timeframe moving averages and use this script so I can pull different ma lengths and timeframes into the one script. It would be cleaner to remove such lines but would not make it "better". It would still perform the same and give same functionality. Having these extra lines makes it easier for others to experiment or further develop this script into something else. Cheers