MA Spread & Rank ConvergenceMA Spread & Rank Convergence (MASRC)
◆ Overview (Overview)
This indicator is designed to track the spread and convergence process between five moving averages (SMA) with different periods to capture the end of trend reversal and adjustment. Rather than just looking at the position of the price, it quantifies how far the short-term moving averages are (overbought/over-selling) versus the long-term moving averages and filters the entry point through the signal line.
◆ Key Features
Calculate multi-movement average spacing: Use five multiples of criterion length (SMA) to measure the level of expansion of the market.
Dynamic signal line: A signal line using EMA detects when separation decreases (convergence) after reaching its peak.
Top 30% rank filter (Approval Line): Rather than simply decreasing the separation, only signals from sufficiently high variability (top 30%) intervals are considered valid to eliminate noise.
◆ How it works
Calculate Max Spread: Calculate the maximum value of the absolute distance from the remaining bifurcations based on SMA 5, the longest bifurcations.
Convergence detection: When the calculated separation value crosses the signal line (EMA), the variability is reduced and the trend is judged to be aligned.
Trend filtering:
Long: When the separation converges, if the short-term bifurcation (SMA 1) is below the long-term bifurcation (SMA 5), we believe it is a rebound after oversold.
Short: When the separation converges, if the short-term bifurcation (SMA 1) is above the long-term bifurcation (SMA 5), it is judged as an adjustment after overbought.
◆ Settings Guide
Criteria Length: Default unit for this horizontal cycle (default 15, maximum 300)
Signal Length: The period of time to average the separation; the larger the value, the more conservative the signal is.
◆ Precautions (Disclaimer)
This indicator has both a Mean Reversion tendency and a trend-following tendency to find a point where the separation is resolved in the section where the trend bursts strongly. Therefore, it is most effective to use it in pressed necks or excessive deviation sections after a clear trend is formed rather than lateral security.MA Spread & Rank Convergence (MASRC)
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