Signal Moving Average Lux Algo MT5
- Indicators
- Lorentzos Roussos
- Version: 1.4
Signal Moving Average Lux Algo for MT5
Discover a unique moving average indicator designed specifically for signal line use in moving average crossover systems. This advanced tool differentiates itself by diverging from price in ranging markets, while closely mirroring a standard moving average in trending markets. This characteristic helps traders avoid unnecessary noise and potential over-trading due to market fluctuations.
The moving average will diverge from the price during ranging markets and reach the value of a regular moving average during trending markets.
Moving average crossover strategies often rely on a "signal" line, a slower moving average used to determine a general trend. This signal line is paired with a faster moving average to filter out potential whipsaw trades that would have been given from crosses between the regular price and the signal line.
The proposed indicator will avoid crossing the price by diverging from it during more ranging periods, thus effectively reducing the number of crosses produced between the price and the signal line.The color of the area between the price and the signal line is determined by the position of the price relative to the signal line, with a green color indicator a price superior to the signal line.
The color of the signal line, however, is taking into account whether market is trending or ranging, only changing once the market is trending.
indicator by Lux Algo for trading view originally
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