Smart Moving Average Dynamics

Smart Moving Average Dynamics — User Guide (Pane + Price Enhancements)

What it is (one-liner)

A momentum-around-the-MA engine that normalizes distance from price to a moving average into a -100 → +100 oscillator, colors the MA by trend, drops level rails at extremes, and gives you a slim strength gauge + info panel for fast context.


Quick Start (TL;DR)

  1. Add SMAD to any symbol/timeframe.

  2. Watch the oscillator in its pane:

    • Above 0 = bullish pressure; below 0 = bearish pressure.

    • Near +100 / -100 = stretched extremes.

  3. The MA line on price auto-colors: Up (green) when trend conditions are met, Down (magenta) when bearish, Neutral otherwise.

  4. When the oscillator leaves an extreme, the script can drop a level rail (horizontal guide) on price. Rails can fade and expire.

  5. Use the bottom-right gauge (0–100%) and middle-right info panel (Trend / Volume / Volatility) to confirm context.

  6. Trade the snapback from extremes or trend continuation when the MA and oscillator agree. Always manage risk at structure.


How it works (plain English)

  • Moving Average Core: Choose SMA, EMA, SMMA (RMA), WMA, VWMA and a length (default 50).

  • Distance → Oscillator: SMAD measures price − MA, then normalizes it to a bounded -100…+100 scale using one of four methods (below).

  • Color Logic:

    • Oscillator bias (beyond your threshold) and MA slope agreement ⇒ trend label Bullish/Bearish, MA line colored accordingly.

    • Otherwise Neutral.

  • Extremes & Rails:

    • When the oscillator hits hard bounds (±100) and then releases, that “true extreme” can mark Upper/Lower rails on price at the prior bar’s high/low.

    • Rails can expire after X bars or once price pushes through; they can soft-fade over time.


Reading the visuals

In the pane (main signal)

  • Oscillator line with premium gradient fill:

    • Above 0 (green gradient) → positive pressure.

    • Below 0 (magenta gradient) → negative pressure.

  • Zero line = balance point.

  • Tiny dots at the oscillator when a filtered extreme release prints (optional via filters).

On the price chart (enhancements)

  • MA line: color-coded by trend (Up / Down / Neutral).

  • Rails: horizontal guides spawned from true extremes (upper rail from +100 release; lower rail from -100 release). They fade and can auto-expire.

  • Candle tint: bars adopt the same gradient tint as the oscillator for quick read (hideable in Style → uncheck the “Candles Color” plot).

Info UI

  • Slim Gauge (bottom-right): shows current oscillator strength as a 21-cell gradient with live % readout.

  • Info Panel (middle-right): TF, Trend (Bullish/Bearish/Neutral), Volume (Low/Medium/High), Volatility (Low/Medium/High).


Inputs (explained)

MA Settings

  • Type: SMA / EMA / SMMA (RMA) / WMA / VWMA.

  • Length: Default 50.

  • Up/Down Colors: Set the MA trend colors (defaults: green up, magenta down).

Normalization (how -100…+100 is computed)

  • Highest Abs (N) (default): Scales by the max absolute |price−MA| over N bars. Simple and adaptive.

  • Z-Score: Scales by standard deviation over N, with σ at ±100 controlled by Z-Score: σ at ±100.

  • ATR-Scaled: Scales by ATR×k (length & multiplier configurable)—good for instruments with changing volatility regimes.

  • Percent Rank: Ranks |price−MA| within the last N bars (0–100), then restores the sign.

Shared knobs

  • Lookback (N): Window for the chosen method.

  • ATR Length & Multiplier (ATR-Scaled only).

  • Z-Score Multiplier (Z-Score only).

Signal Filters (for extremes & optional rail logic)

  • Extreme Threshold %: Where you consider “extreme” (80–100, default 100).

  • Linger Bars at Extreme: Require staying extreme for X bars before accepting the release.

  • Slope Flip Lookback: Require oscillator slope to flip vs. X bars ago.

  • Confirm on Close Only: Only act on confirmed bar closes.

  • Apply Filters to Rails/Levels: If on, rails only spawn when filters pass; if off, they spawn on raw extreme releases.

Level Rails

  • Expire Rails After (bars): 0 = never.

  • Soften Rails After (bars): Start fading the rail after X bars.

  • Softening Transparency Step: How fast it fades each bar (1–50).

Info Panel

  • Trend: Osc Threshold: Minimum oscillator magnitude for Bull/Bear bias.

  • Trend: MA Slope Lookback: Bars used to judge MA slope direction.


Signals & What they mean

  • True Extreme Release (Up) Oscillator was +100 and then leaves +100. If filters pass, marks a potential exhaustion up top.

    • Effect: May drop an Upper Rail at the prior bar’s high (if rails enabled for filters).

  • True Extreme Release (Down) Oscillator was -100 and then leaves -100. Potential downside exhaustion.

    • Effect: May drop a Lower Rail at the prior bar’s low.

  • Trend State (Info Panel) Bullish when oscillator > threshold and MA slope up; Bearish when oscillator < -threshold and MA slope down; else Neutral.

Note: SMAD v1 does not ship with alertconditions. Use the visuals (rails, dots, gauge, panel) or create a TradingView webhook from plot conditions if you need custom alerts.


Playbook (practical ways to use SMAD)

A) Mean-Revert from Extremes

  1. Wait for true extreme (+100 or -100) and a release.

  2. If filters pass and a rail prints, plan a snapback trade toward 0 (the mean) with the rail or nearby swing as invalidaton.

  3. Target: zero line → opposite rail/structure. Scale out on the first stall.

B) Ride the Trend

  1. Bias = Bullish or Bearish in the Info Panel and MA colored accordingly.

  2. Enter on shallow pullbacks while oscillator stays on the biased side of zero.

  3. Invalidation under/over the last swing; trail behind rails/structure.

C) Volatility-Aware Filtering

  • Use the Volume/Volatility readouts to skip mean-reversion trades when volatility is High and prefer trend plays, and vice versa when Low.


Timeframes & presets

Style
TF
MA Length
Norm Lookback (N)
Notes

Scalp

1–5m

20–50

50–100

Consider ATR-Scaled or Percent Rank for responsiveness.

Day trade

5–15m

50

100–200

Default works well; Z-Score with σ≈2.0–2.5 maps comfortably.

Swing

1h–4h

50–200

200–400

Highest Abs (N) is stable; widen invalidations to structure.

Tip: If you see too many extreme events, raise Extreme Threshold or use linger/slope filters. If too few, lower the threshold or filters slightly.


Best Practices

  • Keep the pane visible; the oscillator is the truth source. The price tints and rails are helpers.

  • Hide what you don’t need from the Style panel (e.g., candle tint plot, signal dots) to declutter.

  • Pair SMAD with structure (HTF S/R, session highs/lows) and a risk plan.

  • On news spikes, let the dust settle; extremes can cluster.


Troubleshooting

  • “No rails print.” You may have Apply Filters to Rails on and filters aren’t passing. Lower thresholds or turn that option off.

  • “Rails stay forever.” Set a non-zero Expire Rails After (bars), or let price break them to clear.

  • “Colors look too strong.” Hide the Candles Color plot, or change Up/Down colors in MA settings.


Changelog info (what you’re using)

  • Version: Smart Moving Average Dynamics V1 (pane)

  • Defaults: MA 50 (type selectable), Osc norm Highest Abs (N) with N=50, Extreme 100%, no alerts, rails with optional fade/expiry, slim gauge + premium info panel.

  • Design goal: Clean normalization, robust extreme detection, trend clarity, and actionable rails—without clutter.


Final word

SMAD turns price vs. MA distance into a disciplined, bounded oscillator and ties it back to actionable price context (rails, MA color, gauge, info). Use it to fade extremes with structure or ride trends when momentum and slope align—always with clear invalidation.

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