Editors' picksOPEN-SOURCE SCRIPT
Moving Average Entanglement
Updated
This script uses the gap in moving averages standardized to the average true range to determine entry and exit points.
The red line represents the current percentage of ATR that is deemed "The Dead Zone" - a move that is too small to be reliable.
The histogram represents the gap between moving averages. When the histogram is above the red line, it confirms a breakout move.
The dashed line an be used as a secondary filter and is a moving average of the histogram.
When Standard Deviation mode is on, a third line is displayed, which represents how many standard Deviations the current histogram bar represents, and can be also used as a filter.
The red line represents the current percentage of ATR that is deemed "The Dead Zone" - a move that is too small to be reliable.
The histogram represents the gap between moving averages. When the histogram is above the red line, it confirms a breakout move.
The dashed line an be used as a secondary filter and is a moving average of the histogram.
When Standard Deviation mode is on, a third line is displayed, which represents how many standard Deviations the current histogram bar represents, and can be also used as a filter.
Release Notes
added option to color histogram based on bullish/bearish Gap of MAsRelease Notes
Added AlertsRelease Notes
bug fix for alert conditions to only fire on crossoversRelease Notes
Added alerts when the histogram changes color (goes bullish from bearish or vice-versa) after two or more previous bars of the opposite colorRelease Notes
added price source as an input parameterRelease Notes
Added alert conditions for Std Deviation/MA crossovers and crossundersOpen-source script
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 publication is governed by House rules. You can favorite it to use it on a chart.
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