TMA OVERLAY Trading Guide

The TMA Overlay combines standard institutional trend following with highly specialized candlestick pattern recognition. It runs four separate Smoothed Moving Averages (SMMA) to outline the macro trend, while a secondary algorithm scans the live tape for rare "3-Line Strike" and standard "Engulfing" exhaustion patterns.

What does the indicator show?

• SMMA Matrix: 4 custom colored curves operating at periods 21, 50, 100, and 200 to establish the macro direction.
• Trend Cloud: A massive glowing fill zone painted between the ultra-fast EMA(2) and the macro SMMA(200), instantly flashing red or green to highlight trend dominance.
• Candle Pattern Signals: Bold, textual labels flashing 3s-Bull / 3s-Bear alongside colored triangles marking confirmed 3-Line Strikes and Engulfing setups.

Key Settings

• SMMA Lengths (1-4): Fully tunable moving average periods.
• Pattern Toggles: Boolean switches allowing you to selectively show or hide Bullish Engulfings, Bearish Engulfings, and the 3-Line Strikes to keep your chart clean.

How to use Strategy Parameters (Condition Source)

TMA Overlay is exceptionally powerful for programming fully automated price-action (PA) systems.

Candlestick Reversal Signals

• bullish3LS / bearish3LS — Triggers true (1) exactly when a 3-Line Strike completes. This rare pattern occurs when 3 consecutive directional bars are instantly consumed by a single massive counter-trend candle, signifying a fierce trap reversal.
• bullishEngulfing / bearishEngulfing — Triggers true (1) when a standard engulfing candle fully swallows the previous body.

Strategy Example: Treat 3-Line Strikes as high-conviction traps. Generate a Long trade exactly when bullish3LS is true inside an active uptrend, capturing the "V-shape" recovery after early retail traders were flushed out.