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Moving Average Cloud Guide

August 6, 2023

MTT Moving Average (MA) Clouds are built with the purpose of identifying market trends, and highlighting the strength of the trend. They are built by combining two Moving Averages (MA) with our custom algorithm, to produce the best Moving Average (MA) Cloud on the market. MTT offers you the option to choose between 15 different types of MA as well as the MA length for the two MA.

How to enable Moving Average Cloud ?

Step 1: head over to the MTT Settings

To enable the Moving Average Cloud feature simply head over to the indicator settings.

Step 2: Enable the Moving Average Cloud  feature

When you are inside the MTT settings - locate the Moving Average Cloud and enable it (third box).

Tweaking the settings:

Higher Timeframe

The Moving Average Cloud feature is multi-timeframe, enabling you to select up to three different timeframes simultaneously. This multi-timeframe capability allows you to conduct a more comprehensive analysis, helping you identify larger trends.

Moving Average Type and value

An MA (Moving Average) Cloud is a visual representation used in technical analysis to identify trends and potential support and resistance levels. It is created by shading the area between two different moving averages. The reason you need two moving averages is that one serves to identify the short-term trend while the other captures the longer-term trend. For instance, you might use a 50-day moving average to represent the shorter-term trend and a 200-day moving average for the longer-term trend.

When the short-term moving average is above the long-term moving average, it indicates a bullish (upward) trend, and the area between the two averages on the chart (the "cloud") is typically shaded green. Conversely, when the short-term moving average falls below the long-term average, it indicates a bearish (downward) trend, and the cloud is usually shaded red. The points where the two moving averages cross (known as "crossovers") can signal potential trend reversals. This is why you always need two moving averages to create an MA Cloud.

MA 1 Type

In this setting, you can adjust your Moving Average length. Remember, a higher value corresponds to a broader trend identification.

MA 2 Type

In this setting, you can adjust your Moving Average length. Remember, a higher value corresponds to a broader trend identification.

Practical Example:

In this example below you can see that the Moving Average Cloud serves as a Point Of Interest, it aligned with an Order Block and Structural Trailing Stop Loss line - which gave us an beautiful entry to the downside.

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