Moving Average Alignment™ refers to the technical setup where your preferred moving averages are aligned, that is, in the order you prefer and price is above those same average(s). MAA can also include additional requirements to further confirm an upward trend, such as an active power trend. When these requirements are met, LevelUp refers to this as moving average alignment.
Moving average alignment is a pattern that is tracked on the daily timeframe. The moving averages to determine when alignment occurs are customizable. The power trend is also based on moving averages, specifically the 21-EMA and 50-SMA.
In the chart shown at the top, on the left is a list of the alignment requirements as configured in Settings. Once all the requirements are met, the alignment box begins as highlighted on the chart. The box is active until the user configured exit criteria are met. For example, you can specify a close below a moving average such as the 50-SMA or set a stop loss as a percent loss below the entry point where moving average alignment became active.
Compare Moving Average Alignment to the Power Trend
The power trend is another common pattern in LevelUp. The chart that follows shows boxes for both a power trend and moving average alignment.
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