OPEN-SOURCE SCRIPT

SMA Cross Toggle & Trend Logic

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This script uses two Simple Moving Averages (SMA) to detect trend shifts through crossover events.

1. What the SMA Cross Represents

A crossover occurs when the relative position of the fast and slow SMA changes:

Bullish Cross → Fast SMA moves above Slow SMA
Bearish Cross → Fast SMA moves below Slow SMA

This marks a change in directional dominance, not just price movement.

2. Cross Visualization (Toggle: plot.style_cross)

The script provides a toggle to display crosses directly on the SMA curve using:

plot.style_cross → plots crosses on the SMA value itself
Cross appears only at the exact crossover point (event-based plotting)

This keeps the chart clean and structurally aligned with the moving average, avoiding candle-level noise.

3. Alternative Mode: Line-Based Visualization

When cross markers are replaced with a line connection approach:

Each crossover becomes a node
Consecutive nodes are connected to form a dynamic line

This line behaves like a derived trend line, offering an additional layer of interpretation.

4. Additional Logic from Line Mode

When using line-based plotting instead of crosses:

The system transitions from event detection → structure tracking
The connecting line represents phase continuity between trend shifts
Traders can interpret:
Slope of line → strength of trend transition
Break of line → potential structural failure

This effectively adds a second logic layer:

Not just when trend changes, but how the trend evolves between changes

5. Practical Interpretation Framework
Mode Function Use Case
Cross Mode Discrete signal detection Entry/exit timing
Line Mode Structural continuity Trend following
6. Key Insight

A crossover is not just a signal — it is a state transition in the relationship between two moving averages.

Cross Mode → highlights the moment of transition
Line Mode → captures the path of transition

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