Supercloud is a MA based Trend Representation. Its different from a normal MA Cloud. Cloud starts from '0' level and rise or fall based on price.
Supercloud is plotted based on the difference of the price movement between various MA's of different length. All MA's are plotted with reference to EMA 200. So when the MA's converge or Diverge or Bounce back we can still be in the Trend unless the Cloud goes below or above Zero Line.
works in all Timeframes.

Up Trend:
-> All MA's are Above Zero and Cloud color is complete green
-> A decrease in Cloud Volume indicates a weaker Momentum

Down Trend:
-> All MA's are Below Zero and Cloud color is complete red
-> A decrease in Cloud Volume indicates a weaker Momentum

Sideways:
-> A Mixed color indicates a Sideways moment.

Cloud Outlines:
1) The outer edge of Cloud shows the actual trend.
2) its based on MA-5, when price is above MA 5 or Below MA 5 a bright green and bright red outlines are plotted.

Buy Signals Confirmation:
  • upper Outer Cloud must be Bright Green
  • Cloud under must be fully Shaded Green
  • Alternatively EMA crossover can be used and confirmed.

Sell Signals Confirmation:
  • lower Outer Cloud must be Bright Red
  • Cloud under must be fully Shaded Red
  • Alternatively EMA cross under can be used and confirmed.

MACD
  • MACD is also plotted within the cloud.
  • Color ribbon is used to plot MACD
  • Histogram is not present. Instead use the width of the MACD Ribbon
  • Correspondingly Outer Cloud represents the Histogram.

Zero Line:
  • Zero line is actually EMA5 which is to be treated as EMA200 for our visual representation.
  • A sideway channel is plotted around Zero line.
  • When price reaches this sideways Zone price usually get rejections and starts moving side ways.
  • Trend is established only after price crosses the sideway band.
  • Sideway is calculated based on mintick of the Asset which varies. a min value equivalent to 10EMA or value 10 must be used for better usage.

Open-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 a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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