Momentum Fusion v1

Momentum Fusion v1https://www.tradingview.com/x/iEuycApB/
Overview
Momentum Fusion v1 (MFusion) is a multi-oscillator indicator that combines several components to analyze market momentum and trend strength. It incorporates modified versions of classic indicators such as PVI (Positive Volume Index), NVI (Negative Volume Index), MFI (Money Flow Index), RSI, Stochastic, and Bollinger Bands Oscillator. The indicator displays a histogram that changes color based on momentum strength and includes "FUSION🔥" signal labels when extreme values are reached.

Indicator Settings
Parameters:
EMA Length – Smoothing period for the moving average (default: 255).

Smoothing Period – Internal calculation smoothing parameter (default: 15).

BB Multiplier – Standard deviation multiplier for Bollinger Bands (default: 2.0).

Show verde / marron / media lines – Toggles the display of auxiliary lines.

Show FUSION🔥 label – Enables/disables signal labels.

Indicator Components
1. PVI (Positive Volume Index)
Formula:

pvi := volume > volume[1] ? nz(pvi[1]) + (close - close[1]) / close[1] * sval : nz(pvi[1])
Description:
PVI increases when volume rises compared to the previous bar and accounts for price percentage change. The stronger the price movement with increasing volume, the higher the PVI value.

2. NVI (Negative Volume Index)
Formula:

nvi := volume < volume[1] ? nz(nvi[1]) + (close - close[1]) / close[1] * sval : nz(nvi[1])
Description:
NVI tracks price movements during declining volume. If the price rises on low volume, it may indicate a "stealth" trend.

3. Money Flow Index (MFI)
Formula:

100 - 100 / (1 + up / dn)
Description:
An oscillator measuring money flow strength. Values above 80 suggest overbought conditions, while values below 20 indicate oversold conditions.

4. Stochastic Oscillator
Formula:

k = 100 * (close - lowest(low, length)) / (highest(high, length) - lowest(low, length))
Description:
A classic stochastic oscillator showing price position relative to the selected period's range.

5. Bollinger Bands Oscillator
Formula:

(tprice - BB midline) / (upper BB - lower BB) * 100
Description:
Indicates the price position relative to Bollinger Bands in percentage terms.

Key Lines & Histogram
1. Verde (Green Line)
Calculation:

verde = marron + oscp (normalized PVI)
Interpretation:
Higher values indicate stronger bullish momentum. A FUSION🔥 signal appears when the value reaches 750+.

2. Marron (Brown Line)
Calculation:

marron = (RSI + MFI + Bollinger Osc + Stochastic / 3) / 2
Interpretation:
A composite oscillator combining multiple indicators. Higher values suggest overbought conditions.

3. Media (Red Line)
Calculation:

media = EMA of marron with smoothing period
Interpretation:
Acts as a signal line for trend confirmation.

4. Histogram
Calculation:

histo = verde - marron
Colors:

Bright green (>100) – Strong bullish momentum.

Light green (>0) – Moderate bullish momentum.

Orange (<0) – Bearish momentum.

Red (<-100) – Strong bearish momentum.

Signals & Alerts
1. FUSION🔥 (Strong Momentum)
Condition:
verde >= 750

Visualization:
A "FUSION🔥" label appears below the chart.

Alert:
Can be set to trigger notifications when the condition is met.

2. Background Aura
Condition:
verde > 850

Visualization:
The chart background turns teal, indicating extreme momentum.

Usage Recommendations
FUSION🔥 Signal – Can be used as a long entry point when confirmed by other indicators.

Histogram:

1. Green bars – Potential long entry.

2. Red/orange bars – Potential short entry.

3. Media & Marron Crossover – Can serve as an additional trend filter.

4. Suitable for a 5-15 minute time frame

Conclusion
Momentum Fusion v1 is a powerful tool for momentum analysis, combining multiple indicators into a unified system. It is suitable for:

Trend traders (catching strong movements).

Scalpers (identifying short-term impulses).

Swing traders (filtering entry points).

The indicator features customizable settings and visual signals, making it adaptable to various trading styles.