Moving Average Momentum Signals

30 thg 5

Best for trade execution in lower timeframe (1m,5m,15m) with momentum confirmation in higher timeframes (2h,4h,1d)


This indicator relies on three key conditions to determine buy and sell signals: the price's deviation from a short-term moving average, the change in the moving average over time (past 10 candles), and the price's deviation from a historical price (40 candles). The strategy aims to target moments where the asset's price is likely to experience a reversal or momentum shift.

Conditions

1. Price deviation from short-term Moving Average (MA): Current candle close minus the 10-period MA (price action past 10 candles)
   
2. Change in Moving Average over time: Current 10-period MA minus the 10-period MA from 10 candles ago (price action past 20 candles)
   
3. Price deviation from historical price: Current close minus the close from 40 candles ago (price action past 40 candles)
   

Signal Generation Logic

• Buy Signal: Triggered when all three conditions are positive. Confirmed if the previous signal was a sell or if there were no previous signals
  
• Sell Signal: Triggered when all three conditions are negative. Confirmed if the previous signal was a buy or if there were no previous signals
  

Usage and Strategy
After back testing, I observed the higher timeframes were a good indication of momentum/sentiment that you can take note of while trading intraday on the lower time frames (time intervals stated above). Background highlights are also displayed for easier visualization of bullish/bearish skew in terms of the volume of signals generated.