The indicator is fairly simple:
- A daily moving average of 350 ("long_ma" in script)
- A daily moving average of 111 ("short_ma" in script)
The value of the long moving average is multiplied by two. This way the longer moving average appears above the shorter one.
When the shorter one (orange colored) crosses above the longer (green colored) one, it could mean the top is in.
These moving averages rise at a certain rate. Using these rates we could try to estimate a possible crossover moment. That's exactly what this indicator does! It gives the user a prediction of when a crossover might happen.
Special thanks to:
- Ninorigo, for making his indicator public. This one uses his as a starting point.
- The_Caretaker, for coming up with this idea about calling a top. Yet, his is more price-based, this one is more time-based.
An unused input had been removed.
Previous version of the indicator only looked at the increase of the moving averages during the last day and extrapolated the increase. This extrapolation gave the predicted cross date. This newer version still features that approach, but also added the possibility to smooth out the increase. This way the extrapolation is not solely based on the moving average increase during the last day, but used the increase of the past three (default, but users can change this) days.
The extrapolation is shown using two lines.
Feature to show how many days are left until the cross.
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.