MA Sabres [LuxAlgo]The "MA Sabres" indicator highlights potential trend reversals based on a moving average direction. Detected reversals are accompanied by an extrapolated "Sabre" looking shape that can be used as support/resistance and as a source of breakouts.
🔶 USAGE
If a selected moving average (MA) continues in the same direction for a certain time, a change in that direction could signify a potential reversal.
In this publication, when a trend change occurs, a sabre-shaped figure is drawn which can be used as support/resistance:
A sabre can be indicative of a direction, however, it can also act as a stop-loss when the price should go in the opposite direction:
Or show potential areas of interest:
🔶 DETAILS
This publication will look for a change in direction after the MA went in the same direction during x consecutive bars (settings: " Reversal after x bars in the same direction ").
Then a circle-shaped drawing will be drawn 1 bar back, at the previous high/low, dependable of the previous direction.
From there originates a sabre-shaped figure where the tip lies as far as the user-set MA length.
The angle of the "sabre" relies on the ATR of the previous 14 bars.
Less volatility will create a flatter sabre while the opposite is true when there is more volatility in the previous 14 bars.
The sabre is created by the latest feature, polylines , which enables us to connect several 'points', resulting in a polyline.new() object.
Do note that sabres are offset by one bar to the past to align their locations.
🔶 SETTINGS
MA Type: SMA, EMA, SMMA (RMA), HullMA, WMA, VWMA, DEMA, TEMA, NONE (off)
Length: this sets the length of MA, and the length of the sabre shape
Previous Trend Duration: After the MA direction is the same for x consecutive bars, the first time the direction changes, a sabre is drawn
