Madrid Trend Squeeze with All Averages (MA Filters)

Updated the code and added the averages.

What is the Madrid Trend Squeeze indicator?

This indicator was designed to spot the most profitable points within a trend. A total of 7 colors used as part of the strategy:

• Dark green = Upward trend in general.
• Light green = Current bullish trend.
• Light blue = The maximum profitability in a long position.
• Brown = Downward trend in general.
• Red = Current downtrend.
• Fuchsia = The maximum return in a short position.
• Yellow = The trend has come to a halt and it is an investment warning or a continuation. These are entry points, re-entry or closing.

Putting it all together

• A "Squeeze" occurs when Dark green + Light green + Light blue is aligned (the larger the values ​​are).
• When Fuchsia or Light blue color disappear or contract significantly, it means a possible exhaustion of the movement that will have to be confirmed with the previous histogram bars.
• When the color of the compression (squeeze) appears without the intermediate color (Fuchsia + Yellow, Fuchsia + Brown, Light blue + Yellow, Light blue + Dark green) it could mean that this is just a shake of the movement.

As the color combinations can be complex, it's best to remove the elements that are not needed by customizing the colors to only display what is needed.

PS: Please also try Kvak's alternative version here.