Multi Moving Average System with MACD

Detailed Description of "Multi Moving Average System with MACD" Indicator

This indicator is designed to help traders identify the direction and strength of market trends. It combines several technical tools that work together to provide a more complete picture of market conditions.

What are Moving Averages and how do they work?
Moving Averages (MA) are lines on a chart that show the average price over a specific period. They smooth out price fluctuations, making it easier to see the overall direction of price movement.

This indicator uses 5 moving averages with different periods:
- MA1 (9 periods) - the fastest line, reacts to short-term changes
- MA2 (18 periods) - slightly slower, shows short-term trend
- MA3 (50 periods) - medium-term moving average
- MA4 (72 periods) - shows medium-term trend
- MA5 (200 periods) - the slowest, shows long-term trend

When price is above these lines - it may indicate an uptrend, and when below - a downtrend.

What is MACD and how is it used?
MACD (Moving Average Convergence Divergence) is an oscillator that helps determine trend strength and direction, as well as potential reversal points.

In this indicator, MACD is used for:
- Determining trend strength (weak, medium, strong)
- Identifying potential trend changes (MACD line crossovers)
- Confirming signals from moving averages

How candle coloring works (important for understanding the trend)
One of the key features of this indicator is the color marking of candles, which helps visually determine the current market condition:

- **Strong uptrend (green)**: when the closing price is above both MA1 and MA2 simultaneously
- **Strong downtrend (red)**: when the closing price is below both MA1 and MA2 simultaneously
- **Bullish signal (light green)**: when price crosses MA1 from below upward (potential start of an uptrend)
- **Bearish signal (light red)**: when price crosses MA1 from above downward (potential start of a downtrend)
- **Neutral state (gray)**: when none of the other color conditions are met

**It's important to understand the coloring mechanism:**
- Already formed (closed) candles **do not change their color** - their coloring is permanently fixed
- The current (not closed) candle may change color as the price moves during the formation of the bar
- This is not "repainting" in the negative sense (when signals change retroactively), but a natural process of forming the current candle
- This approach does not mislead, as it shows only the current state relative to moving averages

What does the indicator display?
1. **Five colored lines on the chart** - these are moving averages with different periods. Their crossovers help determine the trend.

2. **Information panel**:
- "Trend" - shows current market condition (Max Bullish, Bullish, Weak Bullish, Weak Bearish, Bearish, Max Bearish) with corresponding color
- "RSI" - Relative Strength Index value, showing overbought/oversold conditions
- "ADX" - Average Directional Index value, showing trend strength

3. Support and resistance levels:
- MA4 and MA5 from higher timeframe (e.g., 4-hour chart when trading on 15-minute chart)
- Mirror levels, calculated mathematically using the formula. These are not subjective levels, but strict mathematical calculations based on market symmetry principle mentioned in John Murphy's book "Technical Analysis of Financial Markets". This approach helps identify potential reversal points where price may react to symmetrical reflection relative to a price level.

4. Signals on the chart:
- MACD and signal line crossovers (crosses)
- Signal line crossing zero level (triangles)
- **MACD line crossing zero level (circles)**:
* Green circles below candles - when MACD line crosses zero level from below upward
* Red circles above candles - when MACD line crosses zero level from above downward

How to interpret the signals?
- **Strong uptrend (Max Bullish)**: when price is above MA1 and MA2, MACD is above zero line and above signal line with sufficient histogram amplitude
- **Weak uptrend (Weak Bullish)**: when MACD is above signal line but below zero line (potential reversal)
- **Strong downtrend (Max Bearish)**: when price is below MA1 and MA2, MACD is below zero line and below signal line with sufficient histogram amplitude
- **Weak downtrend (Weak Bearish)**: when MACD is below signal line but above zero line (potential reversal)

Higher timeframe configuration
One of the unique features of this indicator is the flexible configuration of higher timeframe linkage:

- **Auto-detection (Auto)** - the indicator automatically selects the most appropriate higher timeframe based on the current working timeframe
- **Special profiles** - you can choose a preset for a specific market type:
* **Crypto** - optimized for cryptocurrencies (accounts for 24/7 trading mode)
* **Forex** - optimized for forex market (accounts for 24-hour trading with breaks)
* **Stocks** - optimized for stock market (accounts for exchange trading hours)
- **Manual configuration (Manual)** - complete flexibility: you can specify which higher timeframe to use for each specific current timeframe (from 1 minute to monthly)

This feature allows adapting the indicator to the characteristics of any market and any trading style, providing relevant analysis for both scalpers and position traders.

How to customize the indicator?
You can adjust:
- Types and periods of moving averages
- Colors for different signals and levels
- Display of additional elements (levels, mirrors, signals)
- Filters (volume, RSI, ADX)
- Connection to higher timeframes

Important!
This indicator follows standard technical analysis principles and contains no secret algorithms. It is provided exclusively for informational and educational purposes. Technical analysis does not guarantee future results, and before making trading decisions, it is recommended to use additional analysis methods and consider your risk tolerance.