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Combined Moving Averages - Free TradingView Indicator

Q: What does the yellow background mean?

A yellow background means a squeeze is detected — the 50 and 100 MAs are converging. This often precedes a big move. The sensitivity is controlled by the squeeze multiplier setting (default 0.6). Lower values only highlight tighter squeezes.

Combined Moving Averages is a free TradingView indicator that blends six MA types (EMA, SMA, HMA, RMA, WMA, VWMA) into four smoothed lines. A cloud marks the 50/100 reaction zone, volume spike coloring grades trend strength, squeeze detection flags compression, and arrows fire when conditions align. Works on all markets and timeframes.

Built by Lane Dotson · Last updated November 22, 2022 · View on TradingView →

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WHAT IT DOES

Core Features

Four combined moving averages that blend 6 MA types into smooth, averaged lines with a cloud, volume spike detection, squeeze alerts and entry signals built in.

Combined Moving Average Lines

Each of the 4 moving averages is a combination of an EMA, SMA, HMA, RMA, WMA and VWMA all set to the same length. All 6 are added together and divided by 6 to produce a single averaged line. This smooths the output significantly compared to any individual MA type and should give a better representation of where price will actually react since it accounts for what most traders are using on their charts. The default lengths are 10, 50, 100 and 500.

Moving Average Cloud

The two middle-length moving averages (50 and 100 by default) form a cloud. This is the zone where price typically bounces, since the 50 and 100 moving averages are among the most widely watched levels. The cloud should be your long/short zone when price is trending. The 50 and 100 are colored based on whether the 50 is above or below the 100.

Volume Spike Coloring

The cloud changes to a brighter color when a volume spike is detected, and turns very bright green or red on a major volume spike (matching cloud direction). Dark green or red means volume is at or below the recent median. This gives you an instant read on whether the current trend is backed by volume.

Entry Signals

Arrow signals appear when the current candle is in the cloud, going in the same direction as the cloud, MA #2 and MA #3 are moving in the same direction and a volume spike is detected. These help you identify good entries when markets are trending. Be cautious of these signals when the trend is sideways. Signals can be toggled on or off.

Squeeze Detection

When the 50 and 100 MAs squeeze together, a yellow background appears on the chart. This signals that a big move may be coming. The squeeze fires when the current value difference between MA #2 and MA #3 is less than the median difference multiplied by the squeeze multiplier (default 0.6). Lower multiplier values will only highlight tighter squeezes.

Line Color Logic

The 10 and 500 length MAs change color based on whether the individual moving average is rising or falling compared to its previous value, not based on price position. The 50 and 100 are colored based on whether the 50 line is above or below the 100 line.

INTERPRETATION GUIDE

How to Read the Indicator

Cloud Colors

Dark green cloud - MA #2 is above MA #3. Bullish trend. Volume is at or below median.
Bright green cloud - Bullish cloud with a volume spike detected. Trend is backed by volume.
Very bright green cloud - Bullish cloud with a major volume spike. Strongest bullish signal.
Dark red cloud - MA #2 is below MA #3. Bearish trend. Volume is at or below median.
Bright red cloud - Bearish cloud with a volume spike detected. Trend is backed by volume.
Very bright red cloud - Bearish cloud with a major volume spike. Strongest bearish signal.
Yellow background - Squeeze detected. MAs are converging so expect a big move soon.

Entry Signal Arrows

When an arrow signal appears, it means four conditions are aligned: the candle is inside the cloud, the candle direction matches the cloud direction, the 50 and 100 MAs are both moving the same way, and a volume spike was detected. This is a confluence-based entry signal, not a standalone trigger. Be cautious when the trend is sideways and not clearly directional.

Key Levels

The cloud between the 50 and 100 is the primary zone to watch for bounces and entries when the market is trending. The 10 MA acts as a fast momentum gauge. The 500 MA acts as a long-term trend filter. When all four lines are in alignment, the trend is strong.

CONFIGURATION

Settings Overview

Each moving average has its own configurable length and source. Changing the lengths of MA #2 and MA #3 will change the signals, squeezes and the cloud.

Main Settings

Setting	Default	Description
MA #1 Length	10	Fast combined moving average. Changes color based on whether it is rising or falling.
MA #2 Length	50	Upper edge of the cloud. Colored based on whether it is above or below MA #3. Changing this affects signals, squeezes and the cloud.
MA #3 Length	100	Lower edge of the cloud. Changing this affects signals, squeezes and the cloud.
MA #4 Length	500	Slow combined moving average. Long-term trend filter. Changes color based on direction.
Source (per MA)	Close	The price source used for the calculation. Options: close, open, high, low, ohlc4, etc.
Squeeze Multiplier	0.6	Controls squeeze sensitivity. The squeeze fires when the MA #2/#3 gap is less than the median gap times this multiplier. Lower values = tighter squeezes only.
Signals On/Off	On	Toggle the entry signal arrows on or off.
Line Colors	Varies	Customize the colors of each moving average line.

GOOD TO KNOW

Important Notes & Limitations

⚠ Changing the lengths of MA #2 and MA #3 will change the signals, squeezes and the cloud. Adjust with care.

⚠ Entry signals require multiple conditions to align and are designed for trending markets. Be cautious of signals when the trend is sideways and not clearly directional.

⚠ VWMA is one of the 6 MA types averaged into each line. Instruments without reported volume may affect the combined calculation.

FREE ON TRADINGVIEW

Combined Moving Averages is Free to Use

Add it to your TradingView charts and start trading with blended moving averages, squeeze detection and volume-backed signals today. No subscription required.

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COMMON QUESTIONS

Frequently Asked Questions

Each line is the average of an EMA, SMA, HMA, RMA, WMA and VWMA all set to the same length. All 6 are added together and divided by 6. This produces a smoother, more representative moving average than any single type on its own.

The cloud fills the area between the 50 and 100 length combined moving averages. This is the zone where price typically bounces when trending. It is colored green when the 50 is above the 100 (bullish) and red when below (bearish). Brighter colors indicate a volume spike is present.

Signals require four conditions: the candle is in the cloud, the candle direction matches the cloud, MA #2 and MA #3 are moving in the same direction, and a volume spike is detected. They are designed for trending markets so be cautious when sideways.

A yellow background means a squeeze is detected. the 50 and 100 MAs are converging. This often precedes a big move. The sensitivity is controlled by the squeeze multiplier setting (default 0.6). Lower values only highlight tighter squeezes.

It works on all markets including stocks, crypto, futures and forex, and on all timeframes.

CHANGELOG

Release Notes

    November 22, 2022
  

Initial Release

First public release of the Combined Moving Averages indicator with 4 blended MA lines, cloud, volume spike coloring, squeeze detection and entry signals.

What's Included

• 4 combined moving averages (each averaging EMA, SMA, HMA, RMA, WMA and VWMA)

• Cloud between the 50 and 100 MAs with volume spike brightness coloring

• Squeeze detection with yellow background and adjustable multiplier

• Confluence-based entry signals requiring cloud position, direction, MA alignment and volume spike

• Customizable lengths, sources and colors for each moving average

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