21dma-structure Cycle Counter
21DMA Structure Counter (EMA/SMA Option)
Overview The 21DMA Structure Counter is an advanced technical indicator that tracks consecutive periods where price action remains above a 21-period moving average structure. This indicator helps traders identify momentum phases and potential trend exhaustion points using statistical analysis.
Key Features
Moving Average Structure
Configurable MA Type: Choose between EMA (Exponential Moving Average) or SMA (Simple Moving Average)
21-Period Default: Optimized for the widely-watched 21-period moving average
Triple MA Structure: Tracks high, close, and low moving averages for comprehensive analysis
Statistical Analysis
Cycle Counting: Automatically counts consecutive periods above the MA structure
Historical Data: Maintains up to 2,500 historical cycles (approximately 10 years of daily data)
Z-Score Calculation: Provides statistical context using mean and standard deviation
Multiple Standard Deviation Levels: Displays +1, +2, and +3 standard deviation thresholds
Visual Indicators Color-Coded Bars:
Gray: Below 10-year average
Yellow: Between average and +1 standard deviation
Orange: Between +1 and +2 standard deviations
Red: Between +2 and +3 standard deviations
Fuchsia: Above +3 standard deviations (extreme readings)
Breadth Integration
Multiple Breadth Options: NDFI, NDTH, NDTW (NASDAQ breadth indicators), or VIX
Background Shading: Visual alerts when breadth reaches extreme levels
High/Low Thresholds: Customizable levels for breadth analysis
Real-time Display: Current breadth value shown in data table
Smart Reset Logic
High Below Structure Reset: Automatically resets count when daily high falls below the lowest MA
Flexible Hold Period: Continues counting during temporary weakness as long as structure isn't violated
Precise Entry/Exit: Strict criteria for starting cycles, flexible for maintaining them
How to Use
Trend Identification
Rising Counts: Indicate sustained momentum above key moving average structure
Extreme Readings: Z-scores above +2 or +3 suggest potential trend exhaustion
Historical Context: Compare current cycles to 10-year statistical averages
Risk Management
Breadth Confirmation: Use breadth shading to confirm market-wide strength/weakness
Statistical Extremes: Exercise caution when readings reach +3 standard deviations
Reset Signals: Pay attention to structure violations for potential trend changes
Multi-Timeframe Application
Daily Charts: Primary timeframe for swing trading and position management
Weekly/Monthly: Longer-term trend analysis
Intraday: Shorter-term momentum assessment (adjust MA period accordingly)
Settings
Moving Average Options
Type: EMA or SMA selection
Period: Default 21 (customizable)
Reset Days: Days below structure required for reset
Visual Customization
Standard Deviation Lines: Toggle and customize colors for +1, +2, +3 SD
Breadth Selection: Choose from NDFI, NDTH, NDTW, or VIX
Threshold Levels: Set custom high/low breadth thresholds
Table Styling: Customize text colors, background, and font size
Technical Notes
Data Retention: Maintains 2,500 historical cycles for robust statistical analysis
Real-time Updates: Calculations update with each new bar
Breadth Integration: Uses security() function to pull external breadth data
Performance Optimized: Efficient array management prevents memory issues
Best Practices
Combine with Price Action: Use alongside support/resistance and chart patterns
Monitor Breadth Divergences: Watch for breadth weakness during strong readings
Respect Statistical Extremes: Exercise caution at +2/+3 standard deviation levels
Context Matters: Consider overall market environment and sector rotation
Risk Management: Use appropriate position sizing, especially at extreme readings
Disclaimer This indicator is for educational and informational purposes only. It should not be used as the sole basis for trading decisions. Always combine with other forms of analysis and proper risk management techniques.
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