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FreeIndicators·ThinkorSwim

Moving Average Clouds

MA cloud bands for trend context at a glance.

How to install in ThinkorSwim

  1. In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
  2. Click Create, clear the editor, and paste the code.
  3. Name it, click Apply, then OK, and it draws on your chart.

How to Use — WeTradePro Moving Average Clouds

Two MAs with a colored cloud between them. Educational, not advice.

What it is (one line)

A trend ribbon: a green cloud when the fast MA is above the slow MA (bullish) and red when it's below (bearish) — color flips mark the crossover, thickness shows trend strength.

Who it's for & best timeframe

Trader typeHow you use itBest timeframeRecommended setting
Day traderTrade with the cloud color; buy pullbacks to the cloud in green5-min – 15-min9 / 21 EMA
Swing traderBest fit — hold while the daily cloud stays green, exit on the flipDaily9 / 21 or 20 / 50 EMA
Position traderUse a wide cloud (e.g. 50/200) on the weekly as the macro filterWeekly50 / 200

Best overall: the daily chart with a 9/21 or 20/50 EMA cloud.

What you see (price panel)

  • Fast MA colored green (bullish) / red (bearish), slow MA in gray.
  • Cloud between them: light green = bullish, light red = bearish.
  • Cyan up / magenta down arrows at the crossover.
  • Label: CLOUD: BULLISH/BEARISH with bars since the last flip (trend maturity).

How to trade it (the core play)

  1. Color is your bias. Green cloud = look long only; red cloud = look short only.
  2. Thickness = conviction. A fat, separating cloud is a strong trend; a thin cloud means the MAs are converging — be cautious near a possible flip.
  3. Pullback entries: in a green cloud, buy dips that tag the top of the cloud and hold.
  4. Crossover entries: the arrow marks the flip — best when it agrees with a higher-timeframe trend.
  5. Stop below the cloud (long) / above it (short); exit when price closes through to the other side or the cloud flips color.

Settings (inputs)

  • fastLength (9) / slowLength (21) — the two MA lengths. Try 20/50 (swing) or 50/200 (macro).
  • averageType (EXPONENTIAL) — EMA reacts faster; simple is smoother.
  • price (close) — source.

Best on

  • Liquid, trending stocks, ETFs, and futures. The cloud keeps you out of indecision when the MAs are tangled.

Common mistakes

  • Trading every crossover in chop — thin, repeatedly flipping clouds = no trend; wait for separation.
  • Fighting the color — don't short a fat green cloud.
  • Ignoring the higher timeframe — best entries come when the cloud color agrees with the HTF trend.

Video script outline (for your WeTradePro tutorial)

  1. Hook: "One glance at the cloud color tells you the trend."
  2. Green vs red: which MA is on top.
  3. Thickness: strong trend vs converging/weak.
  4. The crossover arrow: where the trend flips.
  5. The play: trade with the color, buy pullbacks to the cloud.
  6. Stops and exits at the cloud edge.
  7. Recap + "import link in description."

Educational analysis, not financial advice.

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