The following is plotted on the chart
The fast EMA/SMA (based on the 12-period length) in yellow.
The mid EMA/SMA (based on the 26-period length) in gray.
The slow EMA/SMA (based on the 50-period length) in either green or red, depending on whether the current close price is above or below the Overall Trend MA.
In addition to the moving averages, the indicator also calculates the MACD (Moving Average Convergence Divergence), and uses it to color the bars based on the momentum of the asset.
The MACD is calculated using two user-defined lengths (fast and slow), as well as a user-defined smoothing length for the signal line. The oscillator and signal line can be either SMA or EMA, and the colors of the MACD bars are based on whether the histogram is growing or falling, and whether it is above or below the zero line.
Overall, this indicator provides traders with a comprehensive tool for understanding the trend of an asset, as well as the momentum behind that trend. The moving averages provide a clear visual representation of the trend, while the MACD bars give insight into the strength of that trend and potential shifts in momentum.
MA1 above MA2 and Overall trend = Green
IF RSI is above its midline you are confirmed for a long entry
MA1 below MA2 and Overall trend = Red
IF RSI is below its midline you are confirmed for a short entry
2. Removed unneeded color settings for MACD line and Signal line as they will not be plotted.
3. Made the code lighter for your charts.
- Added a 3rd moving average for better judgement of price action
All moving averages will only color bullish bearish according to their actual movement to give you a better visualization of the slow, mid, and fast trend. When all MAs are the same color, all trends are moving in the same direction.
As an example:
If youre overall trend (Slow MA) is bullish color while either of the other two Moving Averages are opposing colors, are have lost either the fast or the mid term trend.
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.