A signal that tracks the number of consecutive price bars closing above a 5-period Simple Moving Average, helping traders identify potential bullish momentum in a series.
Explore complementary indicator rolesHow it works
The signal monitors the number of consecutive price bars that close above the 5-period Simple Moving Average (SMA5), tracking bullish momentum. By default, it looks for a series of more than 6 bars closing above the SMA5, which suggests a strong upward trend.
As each new bar closes, the indicator checks its position relative to the SMA5 and incrementally counts consecutive bars meeting this bullish criteria. This count provides traders with a quantitative measure of sustained upward price movement, helping them assess the strength and persistence of a potential trend.
Why it may be useful
This signal helps traders quickly identify sustained bullish momentum by providing a clear, numerical representation of price strength above a key moving average. It transforms abstract price movement into a concrete count of consecutive bullish bars, making trend identification more systematic and objective.
By tracking the number of bars closing above the SMA5, traders can gauge the reliability and consistency of an upward trend. This approach offers a more nuanced view of market direction than simply observing price movement, enabling more informed trading decisions.
When to explore it
The signal is most effective in markets experiencing clear, trending conditions with consistent directional movement. It works particularly well in liquid markets with moderate volatility, where price trends can develop and sustain momentum over multiple periods.
Traders should use this signal in conjunction with other technical indicators to confirm trend strength and potential entry or exit points. It is especially useful for short-term trading strategies like scalping and day trading, where rapid trend identification can lead to quick, profitable trades.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
