RSI + MFI Momentum Mapper - CoffeeKillerRSI + MFI Momentum Mapper - CoffeeKiller Indicator Guide
Welcome traders! This guide will walk you through the RSI + MFI Momentum Mapper indicator, an innovative market analysis tool developed by CoffeeKiller that combines two powerful oscillators to create a comprehensive momentum visualization system.
🔔 **Warning: This Is Not a Standard RSI or MFI Indicator** 🔔 This indicator combines and normalizes RSI and MFI data to create a unified momentum representation with boundary detection and peak signaling features.
Core Concept: Combined Momentum Analysis
The foundation of this indicator lies in merging the strengths of two complementary oscillators - Relative Strength Index (RSI) and Money Flow Index (MFI) - to provide a more robust momentum signal that accounts for both price action and volume.
Directional Columns: Momentum Strength
- Positive Green Columns: Bullish momentum
- Negative Red Columns: Bearish momentum
- Color intensity varies based on momentum strength
- Special coloring for new high/low boundaries
Marker Lines: Dynamic Support/Resistance
- High Marker Line (Magenta): Tracks the highest point reached during a bullish phase
- Low Marker Line (Cyan): Tracks the lowest point reached during a bearish phase
- Creates visual boundaries showing momentum extremes
Peak Detection System:
- Triangular markers identify significant local maxima and minima
- Background highlighting shows important momentum peaks
- Helps identify potential reversal points and momentum exhaustion
Reference Lines:
- Zero Line (Gray): Divides bullish from bearish momentum
- High Line (+1): Upper threshold for extremely bullish conditions
- Low Line (-1): Lower threshold for extremely bearish conditions
Core Components
1. Oscillator Normalization
- RSI and MFI values centered around zero
- Values scaled to create consistent visualization
- Normalized range typically between -1 and +1
- Combination of indicators for signal reliability
2. Boundary Tracking System
- Automatic detection of highest values in bullish phases
- Automatic detection of lowest values in bearish phases
- Step-line visualization of boundaries
- Color-coded for easy identification
3. Peak Detection System
- Identification of local maxima and minima
- Background highlighting of significant peaks
- Triangle markers for peak visualization
- Zero-line cross detection for trend changes
4. Signal Smoothing
- Signal line calculation via SMA
- Helps filter noise and identify trends
- Provides confirmation of momentum direction
Main Features
Oscillator Settings
- Customizable RSI length for sensitivity control
- Customizable MFI length for sensitivity control
- Normalized display for consistent visualization
- Signal smoothing for clearer readings
Visual Elements
- Color-coded columns showing momentum direction and strength
- Dynamic marker lines for momentum boundaries
- Peak triangles for significant turning points
- Background highlighting for peak identification
- Reference lines for momentum threshold levels
Signal Generation
- Zero-line crosses for trend change signals
- Boundary breaks for momentum strength
- Peak formation for potential reversals
- Color changes for momentum direction and acceleration
Customization Options
- RSI and MFI length parameters
- Marker line visibility and colors
- Peak marker color selection
- Peak background display options
Trading Applications
1. Trend Identification
- Directional line crossing above zero: bullish trend beginning
- Directional line crossing below zero: bearish trend beginning
- Column color: indicates momentum direction
- Column height: indicates momentum strength
2. Reversal Detection
- Peak triangles after extended trend: potential exhaustion
- Background highlighting: significant reversal points
- Directional line approaching marker lines: potential trend change
- Color shifts from bright to muted: decreasing momentum
3. Momentum Analysis
- Breaking above previous high boundary: accelerating bullish momentum
- Breaking below previous low boundary: accelerating bearish momentum
- Special coloring (magenta/cyan): boundary breaks indicating strength
- Approaching +1/-1 lines: extreme momentum conditions
4. Market Structure Assessment
- Consecutive higher peaks: strengthening bullish structure
- Consecutive lower troughs: strengthening bearish structure
- Peak comparisons: relative strength of momentum phases
- Boundary line steps: market structure levels
Optimization Guide
1. Oscillator Settings
- RSI Length: Default 14 provides balanced signals
- Lower values (7-10): More responsive, potentially noisier
- Higher values (20-30): Smoother, fewer false signals
- MFI Length: Default 14 provides balanced signals
- Lower values: More responsive to volume changes
- Higher values: Less sensitive to short-term volume spikes
2. Visual Customization
- Marker Line Colors: Adjust for visibility on your chart
- Peak Marker Color: Default yellow provides good contrast
- Enable/disable background highlights based on preference
- Consider chart background when selecting colors
3. Signal Interpretation
- Stronger signals: When directional line approaches +1/-1
- Confirmation: When peaks form after extended momentum
- Early warnings: When color intensity changes before direction
- Trend strength: Distance between zero line and current reading
4. Reference Line Usage
- Zero line: Primary trend divider
- +1/-1 lines: Extreme momentum thresholds
- Marker lines: Dynamic support/resistance levels
- Distance from reference: Momentum strength measure
Best Practices
1. Signal Confirmation
- Wait for zero-line crosses to confirm trend changes
- Look for peak formations to identify potential reversals
- Check for boundary breaks to confirm strong momentum
- Use with price action for entry/exit precision
2. Timeframe Selection
- Lower timeframes: more signals, potential noise
- Higher timeframes: cleaner signals, less frequent
- Multiple timeframes: confirm signals across time horizons
- Match to your trading style and holding period
3. Market Context
- Strong bullish phase: positive columns breaking above marker line
- Strong bearish phase: negative columns breaking below marker line
- Columns approaching zero: potential trend change
- Columns approaching +1/-1: extreme conditions, potential reversal
4. Combining with Other Indicators
- Use with trend indicators for confirmation
- Pair with other oscillators for divergence detection
- Combine with volume analysis for validation
- Consider support/resistance levels with boundary lines
Advanced Trading Strategies
1. Boundary Break Strategy
- Enter long when directional line breaks above previous high marker line
- Enter short when directional line breaks below previous low marker line
- Use zero-line as initial stop-loss reference
- Take profits at formation of opposing peaks
2. Peak Trading Strategy
- Identify significant peaks with triangular markers
- Look for consecutive lower peaks in bullish phases for shorting opportunities
- Look for consecutive higher troughs in bearish phases for buying opportunities
- Use zero-line crosses as confirmation
3. Extreme Reading Strategy
- Look for directional line approaching +1/-1 lines
- Watch for color changes and peak formations
- Enter counter-trend positions after confirmed peaks
- Use tight stops due to extreme momentum conditions
4. Column Color Strategy
- Enter long when columns turn bright green (increasing momentum)
- Enter short when columns turn bright red (increasing momentum)
- Exit when color intensity fades (decreasing momentum)
- Use marker lines as dynamic support/resistance
Practical Analysis Examples
Bullish Market Scenario
- Directional line crosses above zero line
- Green columns grow in height and intensity
- High marker line forms steps upward
- Peak triangles appear at local maxima
- Background highlights appear at significant momentum peaks
Bearish Market Scenario
- Directional line crosses below zero line
- Red columns grow in depth and intensity
- Low marker line forms steps downward
- Peak triangles appear at local minima
- Background highlights appear at significant momentum troughs
Consolidation Scenario
- Directional line oscillates around zero line
- Column colors alternate frequently
- Marker lines remain relatively flat
- Few or no new peak highlights appear
- Directional values remain small
Understanding Market Dynamics Through RSI + MFI Momentum Mapper
At its core, this indicator provides a unique lens to visualize market momentum by combining two complementary oscillators:
1. Combined Strength: By averaging RSI (price-based) and MFI (volume-based), the indicator provides a more comprehensive view of market momentum that considers both price action and buying/selling pressure.
2. Normalized Scale: The indicator normalizes values around zero, making it easier to identify bullish vs bearish conditions and the relative strength of momentum in either direction.
3. Dynamic Boundaries: The marker lines create a visual representation of the "high water marks" of momentum in both directions, helping to identify when markets are making new momentum extremes.
4. Exhaustion Signals: The peak detection system highlights moments where momentum has reached a local maximum or minimum, often precursors to reversals or consolidations.
Remember:
- Combine signals from directional line, marker lines, and peak formations
- Use appropriate timeframe settings for your trading style
- Customize the indicator to match your visual preferences
- Consider market conditions and correlate with price action
This indicator works best when:
- Used as part of a comprehensive trading system
- Combined with proper risk management
- Applied with an understanding of current market conditions
- Signals are confirmed by price action and other indicators
DISCLAIMER: This indicator and its signals are intended solely for educational and informational purposes. They do not constitute financial advice. Trading involves significant risk of loss. Always conduct your own analysis and consult with financial professionals before making trading decisions.
Tìm kiếm tập lệnh với "momentum"
Waldo Momentum Cloud Bollinger Bands (WMCBB)
Title: Waldo Momentum Cloud Bollinger Bands (WMCBB)
Description:
Introducing the "Waldo Momentum Cloud Bollinger Bands (WMCBB)," an innovative trading tool crafted for those who aim to deepen their market analysis by merging two dynamic technical indicators: Dynamic RSI Bollinger Bands and the Waldo Cloud.
What is this Indicator?
WMCBB integrates the volatility-based traditional Bollinger Bands with a momentum-sensitive approach through the Relative Strength Index (RSI). Here’s how it works:
Dynamic RSI Bollinger Bands: These bands dynamically adjust according to the RSI, which tracks the momentum of price movements. By scaling the RSI to align with price levels, we generate bands that not only reflect market volatility but also the underlying momentum, offering a refined view of overbought and oversold conditions.
Waldo Cloud: This feature adds a layer of traditional Bollinger Bands, visualized as a 'cloud' on your chart. It employs standard Bollinger Band methodology but enhances it with additional moving average layers to better define market trends.
The cloud's color changes dynamically based on various market conditions, providing visual signals for trend direction and potential trend reversals.
Why Combine These Indicators?
Combining Dynamic RSI Bollinger Bands with the Waldo Cloud in WMCBB aims to:
Enhance Trend Identification: The Waldo Cloud's color-coded system aids in recognizing the overarching market trend, while the Dynamic RSI Bands give insights into momentum changes within that trend, offering a comprehensive view.
Improve Volatility and Momentum Analysis: While traditional Bollinger Bands measure market volatility, integrating RSI adds a layer of momentum analysis, potentially leading to more accurate trading signals.
Visual Clarity: The unified color scheme for both sets of bands, which changes according to RSI levels, moving average crossovers, and price positioning, simplifies the process of gauging market sentiment at a glance.
Customization: Users have the option to toggle the visibility of moving averages (MA) through the settings, allowing for tailored analysis based on individual trading strategies.
Usage:
Utilize WMCBB to identify potential trend shifts by observing price interactions with the dynamic bands or changes in the Waldo Cloud's color.
Watch for divergences between price movements and RSI to forecast potential market reversals or continuations.
This combination shines in sideways markets where traditional indicators might fall short, as it provides additional context through RSI momentum analysis.
Settings:
Customize parameters for both the Dynamic RSI and Waldo Cloud Bollinger Bands, including the calculation source, standard deviation factors, and moving average lengths.
WMCBB is perfect for traders seeking to enhance their market analysis through the synergy of momentum and volatility, all while maintaining visual simplicity. Trade with greater insight using the Waldo Momentum Cloud Bollinger Bands!
Squeeze Momentum Indicator [CHE] Squeeze Momentum Indicator
The Squeeze Momentum Indicator is an improved and simplified version of the classic Squeeze Momentum Indicator by LazyBear. It focuses on precise detection of squeeze phases without relying on Keltner Channels (KC) or complex momentum calculations. Instead, it emphasizes the dynamic analysis of Bollinger Band widths and their distance changes to provide clear and intuitive signals.
What is the Squeeze Momentum Indicator ?
This indicator helps you identify periods of low volatility (squeeze phases) when the market is often poised for significant moves. With its clear visualization and innovative methods, it enables traders to spot breakout opportunities early and trade strategically.
Differences from the Original LazyBear Indicator
1. Use of Bollinger Bands (BB):
- LazyBear Indicator combines Bollinger Bands with Keltner Channels. A squeeze is detected when the Bollinger Bands fall inside the Keltner Channels.
- CHE Indicator relies solely on Bollinger Bands and an additional analysis of their width (distance between the upper and lower bands). This makes the calculation more straightforward and reduces dependency on multiple indicator families.
2. Squeeze Detection:
- LazyBear: A squeeze is defined based on the relationship between Bollinger Bands and Keltner Channels. It has three states: “Squeeze On,” “Squeeze Off,” and “No Squeeze.”
- CHE: A squeeze is detected when the width of the Bollinger Bands falls below the lower "Distance Bollinger Bands." It only has two states: Squeeze Active and No Squeeze.
3. Momentum Calculation:
- LazyBear: Uses linear regression (LinReg) to calculate momentum and displays it as color-coded histograms.
- CHE: Does not include momentum calculations. The focus is entirely on volatility visualization and squeeze detection.
4. Visualization:
- LazyBear: Displays momentum histograms and horizontal lines to signal different states.
- CHE: Visualizes the width of the Bollinger Bands and their Distance Bollinger Bands as lines on the chart. The chart background turns green when a squeeze is detected, simplifying interpretation.
What Is Plotted?
1. Bollinger Band Width:
- A line representing the distance between the upper and lower Bollinger Bands, measuring market volatility.
2. Distance Bollinger Bands:
- Two additional lines (upper and lower Distance Bollinger Bands) based on the Bollinger Band width, defining thresholds for squeeze conditions.
3. Session-Specific Box:
- A dynamic box is drawn on the chart during a squeeze phase. The box marks the high and low of the market for the squeeze duration. It visually frames the range, helping traders monitor breakouts beyond these levels.
4. Max/Min Markers:
- The indicator dynamically updates and marks the maximum and minimum price levels during a squeeze. These levels can serve as breakout thresholds or critical reference points for price action.
5. Background Color:
- The chart background turns green when a squeeze is active (Bollinger Band width falls below the lower Distance Bollinger Bands). This highlights potential breakout conditions.
How to Use the CHE Indicator
1. Add the Indicator:
- Add the indicator to your chart and customize settings such as Bollinger Band length (`sqz_length`) and multiplier (`sqz_multiplier`) to fit your strategy.
2. Identify Squeeze Conditions:
- Watch for the green background, which signals a squeeze—indicating a period of low volatility where significant market moves often follow.
3. Monitor the Box and Max/Min Levels:
- During a squeeze, the box outlines the trading range, and the maximum and minimum levels are updated in real time. Use these as breakout triggers or support/resistance zones.
4. Session-Specific Analysis:
- The indicator can highlight squeezes during specific trading sessions (e.g., market open), allowing you to focus on key time frames.
5. Additional Confirmation:
- Combine the CHE Indicator with price action analysis or momentum tools to determine the direction of potential breakouts.
Why Use the Squeeze Momentum Indicator ?
- Simplicity: Clear visualization and reduced complexity by eliminating Keltner Channels and momentum calculations.
- Flexibility: Suitable for all markets—stocks, forex, crypto, and more.
- Enhanced Visualization: The box and max/min markers provide real-time visual cues for range-bound trading and breakout strategies.
- Efficiency: Focuses on what matters most—identifying volatility and squeeze phases.
With the Squeeze Momentum Indicator , you can take your trading strategy to the next level. Thanks to its clear design, dynamic range visualization, and innovative methods, you’ll recognize breakout opportunities earlier and trade with greater precision. Try it out and experience its user-friendliness and effectiveness for yourself!
Dual Momentum StrategyThis Pine Script™ strategy implements the "Dual Momentum" approach developed by Gary Antonacci, as presented in his book Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk (McGraw Hill Professional, 2014). Dual momentum investing combines relative momentum and absolute momentum to maximize returns while minimizing risk. Relative momentum involves selecting the asset with the highest recent performance between two options (a risky asset and a safe asset), while absolute momentum considers whether the chosen asset has a positive return over a specified lookback period.
In this strategy:
Risky Asset (SPY): Represents a stock index fund, typically more volatile but with higher potential returns.
Safe Asset (TLT): Represents a bond index fund, which generally has lower volatility and acts as a hedge during market downturns.
Monthly Momentum Calculation: The momentum for each asset is calculated based on its price change over the last 12 months. Only assets with a positive momentum (absolute momentum) are considered for investment.
Decision Rules:
Invest in the risky asset if its momentum is positive and greater than that of the safe asset.
If the risky asset’s momentum is negative or lower than the safe asset's, the strategy shifts the allocation to the safe asset.
Scientific Reference
Antonacci's work on dual momentum investing has shown the strategy's ability to outperform traditional buy-and-hold methods while reducing downside risk. This approach has been reviewed and discussed in both academic and investment publications, highlighting its strong risk-adjusted returns (Antonacci, 2014).
Reference: Antonacci, G. (2014). Dual Momentum Investing: An Innovative Strategy for Higher Returns with Lower Risk. McGraw Hill Professional.
Chande Momentum Oscillator StrategyThe Chande Momentum Oscillator (CMO) Trading Strategy is based on the momentum oscillator developed by Tushar Chande in 1994. The CMO measures the momentum of a security by calculating the difference between the sum of recent gains and losses over a defined period. The indicator offers a means to identify overbought and oversold conditions, making it suitable for developing mean-reversion trading strategies (Chande, 1997).
Strategy Overview:
Calculation of the Chande Momentum Oscillator (CMO):
The CMO formula considers both positive and negative price changes over a defined period (commonly set to 9 days) and computes the net momentum as a percentage.
The formula is as follows:
CMO=100×(Sum of Gains−Sum of Losses)(Sum of Gains+Sum of Losses)
CMO=100×(Sum of Gains+Sum of Losses)(Sum of Gains−Sum of Losses)
This approach distinguishes the CMO from other oscillators like the RSI by using both price gains and losses in the numerator, providing a more symmetrical measurement of momentum (Chande, 1997).
Entry Condition:
The strategy opens a long position when the CMO value falls below -50, signaling an oversold condition where the price may revert to the mean. Research in mean-reversion, such as by Poterba and Summers (1988), supports this approach, highlighting that prices often revert after sharp movements due to overreaction in the markets.
Exit Conditions:
The strategy closes the long position when:
The CMO rises above 50, indicating that the price may have become overbought and may not provide further upside potential.
Alternatively, the position is closed 5 days after the buy signal is triggered, regardless of the CMO value, to ensure a timely exit even if the momentum signal does not reach the predefined level.
This exit strategy aligns with the concept of time-based exits, reducing the risk of prolonged exposure to adverse price movements (Fama, 1970).
Scientific Basis and Rationale:
Momentum and Mean-Reversion:
The strategy leverages the well-known phenomenon of mean-reversion in financial markets. According to research by Jegadeesh and Titman (1993), prices tend to revert to their mean over short periods following strong movements, creating opportunities for traders to profit from temporary deviations.
The CMO captures this mean-reversion behavior by monitoring extreme price conditions. When the CMO reaches oversold levels (below -50), it signals potential buying opportunities, whereas crossing overbought levels (above 50) indicates conditions for selling.
Market Efficiency and Overreaction:
The strategy takes advantage of behavioral inefficiencies and overreactions, which are often the drivers behind sharp price movements (Shiller, 2003). By identifying these extreme conditions with the CMO, the strategy aims to capitalize on the market’s tendency to correct itself when price deviations become too large.
Optimization and Parameter Selection:
The 9-day period used for the CMO calculation is a widely accepted timeframe that balances responsiveness and noise reduction, making it suitable for capturing short-term price fluctuations. Studies in technical analysis suggest that oscillators optimized over such periods are effective in detecting reversals (Murphy, 1999).
Performance and Backtesting:
The strategy's effectiveness is confirmed through backtesting, which shows that using the CMO as a mean-reversion tool yields profitable opportunities. The use of time-based exits alongside momentum-based signals enhances the reliability of the strategy by ensuring that trades are closed even when the momentum signal alone does not materialize.
Conclusion:
The Chande Momentum Oscillator Trading Strategy combines the principles of momentum measurement and mean-reversion to identify and capitalize on short-term price fluctuations. By using a widely tested oscillator like the CMO and integrating a systematic exit approach, the strategy effectively addresses both entry and exit conditions, providing a robust method for trading in diverse market environments.
References:
Chande, T. S. (1997). The New Technical Trader: Boost Your Profit by Plugging into the Latest Indicators. John Wiley & Sons.
Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. The Journal of Finance, 25(2), 383-417.
Jegadeesh, N., & Titman, S. (1993). Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency. The Journal of Finance, 48(1), 65-91.
Murphy, J. J. (1999). Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications. New York Institute of Finance.
Poterba, J. M., & Summers, L. H. (1988). Mean Reversion in Stock Prices: Evidence and Implications. Journal of Financial Economics, 22(1), 27-59.
Shiller, R. J. (2003). From Efficient Markets Theory to Behavioral Finance. Journal of Economic Perspectives, 17(1), 83-104.
Multi-Asset Cross Timeframe Divergence Ind. (MACDI) // AlgoFyreThe Multi-Asset Cross Timeframe Divergence Indicator (MACDI) identifies divergences in momentum like RSI across multiple assets and timeframes. It visually highlights lagging correlated asset momentum divergences, helping traders spot inefficiencies and potential trade opportunities in the following asset.
🔶 KEY FEATURES
🔸Average Momentum Trendline for Each Timeframe
The Average Momentum Trendline feature calculates the average momentum of multiple assets over specified timeframes. It uses smoothed values to determine the momentum trend for each timeframe on the average aggregated momentum of both assets. This trendline helps traders identify the overall direction of the market momentum, providing a clearer picture of potential price movements.
🔸Real-time Divergence Indication and Alert Table
The Real-time Divergence Indications and Alert Table feature visualizes detected divergences between the momentum values of the two assets across different timeframes. It identifies both bullish and bearish divergences, signaling lagging reversals in the the following asset and potential trading opportunities. When a divergence is detected, the system generates real-time visual indications on the chart and in an overview table for traders to act promptly. The alert table provides a comprehensive overview of all detected divergences, making it easier for traders to monitor and respond to market changes.
🔸Color and Size Based Labels on Price Chart based on Divergence Type
The Color and Size Based Labels feature visually represents divergences directly on the price chart. Bullish and bearish divergences are marked with distinct colors and sizes, making them easily identifiable at a glance. Larger labels indicate higher timeframes and thus generally more significance.
🔶 INSTRUCTION GUIDELINES
🔸Identify Divergence Clusters
The more divergences align, the higher the probability of a potential trend reversal in the asset. When multiple multi-timeframe divergences occur in both lower and higher timeframes within a local cluster, the probability of a reversal increases. This is valid for both for bullish and bearish divergences.
🔸Spot Low Probability Divergences
To further increase the probability, analyze the current state of the average momentum trendline. For a bullish reversal, a relatively low level of the average momentum trendline is preferred, whereas for a bearish reversal, a relatively high level is preferred.
🔶 INDIVIDUAL CONFIGURATION
🔸Leading Asset
This input allows the user to select the leading asset for the divergence analysis.
🔸Following Asset
This input allows the user to select the following asset for the divergence analysis.
🔸Higher Timeframe
This input sets the higher timeframe for the analysis.
🔸Lower Timeframe
This input sets the lower timeframe for the analysis.
🔸Show RSI Divergence
This input enables or disables the display of RSI divergence signals.
🔸RSI Length
This input sets the length of the RSI calculation.
🔸RSI Source
This input sets the source data for the RSI calculation (e.g., close price).
🔸RSI Smoothing Length
This input sets the length of the smoothing applied to the RSI values.
🔸Smoothing Method
This input sets the method used for smoothing the RSI values.
🔶 CONCLUSION
The Multi-Asset Cross Timeframe Divergence Indicator (MACDI) is a powerful tool for identifying momentum divergences across multiple assets and timeframes. Its visual cues and customizable table make it easy to use and interpret, providing valuable insights for trading decisions.
Squeeze Momentum Oscillator [AlgoAlpha]🎉📈 Introducing the Squeeze Momentum Oscillator by AlgoAlpha 📉🎊
Unlock the secrets of market dynamics with our innovative Squeeze Momentum Oscillator! Crafted for those who seek to stay ahead in the fast-paced trading environment, this tool amalgamates critical market momentum and volatility indicators to offer a multifaceted view of potential market movements. Here's why it's an indispensable part of your trading toolkit:
Key Features:
🌈 Customizable Color Schemes: Easily distinguish between bullish (green) and bearish (red) momentum phases for intuitive analysis.
🔧 Extensive Input Settings: Tailor the oscillator lengths for both Underlying and Swing Momentum to match your unique trading approach.
📊 Dedicated Squeeze Settings: Leverage precise volatility insights to identify market squeeze scenarios, signaling potential breakouts or consolidations.
🔍 Advanced Divergence Detection: Utilize sophisticated algorithms to detect and visualize both bullish and bearish divergences, pointing towards possible market reversals.
📈 Hyper Squeeze Detection: Stay alert to high-momentum market movements with our hyper squeeze feature, designed to extremely suppressed market volatility.
🔔 Comprehensive Alert System: Never miss a trading opportunity with alerts for momentum changes, squeeze conditions, and more.
Quick Guide to Using the Squeeze Momentum Oscillator:
🛠 Add the Indicator: Add the indicator to your favourites. Adjust the oscillator and squeeze settings to suit your trading preferences.
📊 Market Analysis: Keep an eye on the squeeze value and momentum z-score for insights into volatility and market direction. Hyper Squeeze signals are your cue for high momentum trading opportunities.
🔔 Alerts: Configure alerts for shifts in underlying and swing momentum, as well as entry and exit points for squeeze conditions, to capture market moves efficiently.
How It Works:
The Squeeze Momentum Oscillator by AlgoAlpha synergistically combines the principles of momentum tracking and market squeeze detection. By integrating the core logic of the Squeeze & Release indicator, it calculates the Squeeze Value (SV) through a comparison of the Exponential Moving Average (EMA) of the Average True Range (ATR) against the high-low price EMA. This SV is further analyzed alongside its EMA to pinpoint squeeze conditions, indicative of potential market breakouts or consolidations. In addition to this, the oscillator employs Hyper Squeeze Detection for identifying extremely low volatility. The momentum aspect of the oscillator evaluates the price movement relative to EMAs of significant highs and lows, refining these observations with a z-score normalization for short-term momentum insights. Moreover, the incorporation of divergence detection aids in identifying potential reversals, making this oscillator a comprehensive tool for traders looking to harness the power of volatility and momentum in their market analysis. The combination of the Squeeze & Release and the Momentum Oscillator allows traders to time their trades with more precision by entering when the market is in a squeeze and front running the volatility of a major move.
Elevate your trading strategy with the Squeeze Momentum Oscillator by AlgoAlpha and gain a competitive edge in deciphering market dynamics! 🌟💼 Happy trading!
The Swinging Momentum IndicatorThe Swinging Momentum indicator is a custom trading indicator that looks at price momentum to identify potential buy and sell signals. It uses the rate of change in closing price over the last few bars to determine if momentum is increasing or decreasing. It also looks at the relationship of the close price to recent highs and lows, volume, and short term moving averages to confirm the strength of the momentum signal.
The indicator has two main components - identifying initial buy and sell signals, and then rating the strength of those signals. For buys, it looks for an increase in closing price momentum along with a close above recent highs and highest volume. For sells, it looks for a decrease in momentum and close below recent lows and highest volume. This identifies the initial signal without too many false signals.
It then looks at multiple factors to grade the strength of the signal, on a scale of 0 to 3. For buys it looks at how the close compares to the open, high and low of the last 4 bars, if the current low is above the recent low, and if there are more gaining days than losing days recently. For sells it looks at the close versus the open/high/low, if the current high is below the recent high, and if there are more losing than gaining days.
Each condition met adds 1 point to the strength rating. A rating above 2 is considered a strong momentum signal. This filters out weaker signals and reduces whipsaws.
The end result is plotted on the chart. Buy signals are triangles pointing up below the bars, sells are triangles pointing down above the bars. The colors help visualize the strength - strong signals are green for buys and red for sells, while weaker signals are yellow.
Trading with the Swinging Momentum indicator is straightforward. Strong buy signals identify upside momentum, so traders would look to enter long positions on a retest of the buy signal bar high. Strong sell signals identify downside momentum, so short positions can be entered on a retest of the bar low. Stops are placed beyond recent swing points in the opposite direction of the trade.
Since momentum can quickly change, risk management is key. Traders should look for other confirming indicators to strengthen the probability of a momentum trade working out. Good additional indicators to use with momentum include volume, trends, support/resistance and volatility measures.
The advantage of the Swinging Momentum indicator is that isolating the strongest momentum moves helps traders focus on higher probability trade setups. Monitoring both the initial signal and the strength rating gives an added level of confidence compared to standard momentum indicators. This custom indicator combines multiple momentum strategies into one, allowing traders to quickly identify and evaluate momentum opportunities on the chart.
Used appropriately with sound risk management, the Swinging Momentum indicator can be a valuable addition to a trading system. It visualizes both the direction and strength of momentum, key factors when trading trends and breakouts. While no indicator is perfect, understanding and utilizing momentum is a key concept for traders to master. This indicator provides a graphical representation to improve the way momentum is incorporated into trading decisions.
Strategy Myth-Busting #11 - TrendMagic+SqzMom+CDV - [MYN]This is part of a new series we are calling "Strategy Myth-Busting" where we take open public manual trading strategies and automate them. The goal is to not only validate the authenticity of the claims but to provide an automated version for traders who wish to trade autonomously.
Our 11th one is an automated version of the "Magic Trading Strategy : Most Profitable Indicator : 1 Minute Scalping Strategy Crypto" strategy from "Fx MENTOR US" who doesn't make any official claims but given the indicators he was using, it looked like on the surface that this might actually work. The strategy author uses this on the 1 minute and 3 minute timeframes on mostly FOREX and Heiken Ashi candles but as the title of his strategy indicates is designed for Crypto. So who knows..
To backtest this accurately and get a better picture we resolved the Heiken Ashi bars to standard candlesticks . Even so, I was unable to sustain any consistency in my results on either the 1 or 3 min time frames and both FOREX and Crypto. 10000% Busted.
This strategy uses a combination of 3 open-source public indicators:
Trend Magic by KivancOzbilgic
Squeeze Momentum by LazyBear
Cumulative Delta Volume by LonesomeTheBlue
Trend Magic consists of two main indicators to validate momentum and volatility. It uses an ATR like a trailing Stop to determine the overarching momentum and CCI as a means to validate volatility. Together these are used as the primary indicator in this strategy. When the CCI is above 0 this is confirmation of a volatility event is occurring with affirmation based upon current momentum (ATR).
The CCI volatility indicator gets confirmation by the the Cumulative Delta Volume indicator which calculates the difference between buying and selling pressure. Volume Delta is calculated by taking the difference of the volume that traded at the offer price and the volume that traded at the bid price. The more volume that is traded at the bid price, the more likely there is momentum in the market.
And lastly the Squeeze Momentum indicator which uses a combination of Bollinger Bands, Keltner Channels and Momentum are used to again confirm momentum and volatility. During periods of low volatility, Bollinger bands narrow and trade inside Keltner channels. They can only contract so much before it can’t contain the energy it’s been building. When the Bollinger bands come back out, it explodes higher. When we see the histogram bar exploding into green above 0 that is a clear confirmation of increased momentum and volatile. The opposite (red) below 0 is true when there are low periods. This indicator is used as a means to really determine when there is premium selling plays going on leading to big directional movements again confirming the positive or negative momentum and volatility direction.
If you know of or have a strategy you want to see myth-busted or just have an idea for one, please feel free to message me.
Trading Rules
1 - 3 min candles
FOREX or Crypto
Stop loss at swing high/low | 1.5 risk/ratio
Long Condition
Trend Magic line is Blue ( CCI is above 0) and above the current close on the bar
Squeeze Momentum's histogram bar is green/lime
Cumulative Delta Volume line is green
Short Condition
Trend Magic line is Red ( CCI is below 0) and below the current close on the bar
Squeeze Momentum's histogram bar is red/maroon
Cumulative Delta Volume line is peach
Reverse Stochastic Momentum Index On ChartIntroducing the Reverse Stochastic Momentum Index "On Chart" version
According to Investopedia :
“The Stochastic Momentum Index (SMI) is a more refined version of the stochastic oscillator, employing a wider range of values and having a higher sensitivity to closing prices.”
The SMI is considered a refinement of the stochastic oscillator developed by William Blau and introduced in 1993 in an attempt to provide a more reliable indicator, less subject to false swings.
It calculates the distance of the current closing price as it relates to the median of the high/low range of price.
The SMI has a normal range of values between +100 and -100.
When the present closing price is higher than the median, or midpoint value of the high/low range, the resulting value is positive.
When the current closing price is lower than that of the midpoint of the high/low range, the SMI has a negative value.
Here I have reverse engineered the SMI formula to derive 2 functions.
One function calculates the chart price at which the SMI will reach a particular SMI scale value.
The second function calculates the chart price at which the SMI will crossover its signal line.
I have employed those functions here to give the "crossover" price levels for :
Upper alert level ( default 40, color : aqua blue )
Mid-Line ( default value 0, color : white )
Lower alert level ( default -40, color : purple )
Signal line ( default 13, colors : bright red & lime green )
And also to give the SMI eq price ( colors : red & green )
The midline, upper and lower alert levels return the closing price which would make SMI equal to their respective values
The user can infer from this that.....
Closing above these prices will cause the Stochastic Momentum Index to cross above the associated levels
Closing below these prices will cause the Stochastic Momentum Index to cross below the associated levels
Signal line returns the closing price where Stochastic Momentum Index is equal to its signal line
The user can infer from this that.....
Closing above this price will cause the Stochastic Momentum Index to cross above the signal line
Closing below this price will cause the Stochastic Momentum Index to cross below the signal line
SMI eq price returns the closing price which would make the SMI equal to its previous value
The user can infer from this that.....
Closing above this price will cause the Stochastic Momentum Index to increase
Closing below this price will cause the Stochastic Momentum Index to decrease
Note : all returned prices have a returned value filter to replace any values below zero with zero to help prevent auto focus issues.
These levels are displayed as plotted lines on the chart and also as an optional infobox with choice of displayed info.
This allows the user to see directly on the chart the interplay between the various crossover levels and price action and to precisely plan entries, exits and stops for their SMI based trades.
Traditionally traders and analysts will consider:
Positives values above 40 indicate a bullish trend
Negative values below -40 indicate a bearish trend .
Common traditional ways to derive signals from the SMI :
When the SMI crosses below -40 and then moves back above it, a buy signal is generated.
When the SMI crosses above +40 and then moves back below it, a sell signal is generated.
When the SMI line crosses above the signal line. A signal to buy is generated
When the SMI line crosses below the signal line signal to sell is generated.
When the SMI crosses above the zeroline, signal line and the SMI eq level many interpret that as a full bullish bias signal and take trades only in that direction, vice versa for bearish bias.
Traders also look for divergences between the SMI and price action.
The SMI is often used in conjunction with the Chande Momentum Oscillator or R squared indicator to determine overall market trendiness where the SMI is used to determine the direction of the trend, and also with volume indicators to show if the momentum carries significant selling or buying pressure.
Price Action and 3 EMAs Momentum plus Sessions FilterThis indicator plots on the chart the parameters and signals of the Price Action and 3 EMAs Momentum plus Sessions Filter Algorithmic Strategy. The strategy trades based on time-series (absolute) and relative momentum of price close, highs, lows and 3 EMAs.
I am still learning PS and therefore I have only been able to write the indicator up to the Signal generation. I plan to expand the indicator to Entry Signals as well as the full Strategy.
The strategy works best on EURUSD in the 15 minutes TF during London and New York sessions with 1 to 1 TP and SL of 30 pips with lots resulting in 3% risk of the account per trade. I have already written the full strategy in another language and platform and back tested it for ten years and it was profitable for 7 of the 10 years with average profit of 15% p.a which can be easily increased by increasing risk per trade. I have been trading it live in that platform for over two years and it is profitable.
Contributions from experienced PS coders in completing the Indicator as well as writing the Strategy and back testing it on Trading View will be appreciated.
STRATEGY AND INDICATOR PARAMETERS
Three periods of 12, 48 and 96 in the 15 min TF which are equivalent to 3, 12 and 24 hours i.e (15 min * period / 60 min) are the foundational inputs for all the parameters of the PA & 3 EMAs Momentum + SF Algo Strategy and its Indicator.
3 EMAs momentum parameters and conditions
• FastEMA = ema of 12 periods
• MedEMA = ema of 48 periods
• SlowEMA = ema of 96 periods
• All the EMAs analyse price close for up to 96 (15 min periods) equivalent to 24 hours
• There’s Upward EMA momentum if price close > FastEMA and FastEMA > MedEMA and MedEMA > SlowEMA
• There’s Downward EMA momentum if price close < FastEMA and FastEMA < MedEMA and MedEMA < SlowEMA
PA momentum parameters and conditions
• HH = Highest High of 48 periods from 1st closed bar before current bar
• LL = Lowest Low of 48 periods from 1st closed bar from current bar
• Previous HH = Highest High of 84 periods from 12th closed bar before current bar
• Previous LL = Lowest Low of 84 periods from 12th closed bar before current bar
• All the HH & LL and prevHH & prevLL are within the 96 periods from the 1st closed bar before current bar and therefore indicative of momentum during the past 24 hours
• There’s Upward PA momentum if price close > HH and HH > prevHH and LL > prevLL
• There’s Downward PA momentum if price close < LL and LL < prevLL and HH < prevHH
Signal conditions and Status (BuySignal, SellSignal or Neutral)
• The strategy generates Buy or Sell Signals if both 3 EMAs and PA momentum conditions are met for each direction and these occur during the London and New York sessions
• BuySignal if price close > FastEMA and FastEMA > MedEMA and MedEMA > SlowEMA and price close > HH and HH > prevHH and LL > prevLL and timeinrange (LDN&NY) else Neutral
• SellSignal if price close < FastEMA and FastEMA < MedEMA and MedEMA < SlowEMA and price close < LL and LL < prevLL and HH < prevHH and timeinrange (LDN&NY) else Neutral
Entry conditions and Status (EnterBuy, EnterSell or Neutral)(NOT CODED YET)
• ENTRY IS NOT AT THE SIGNAL BAR but at the current bar tick price retracement to FastEMA after the signal
• EnterBuy if current bar tick price <= FastEMA and current bar tick price > prevHH at the time of the Buy Signal
• EnterSell if current bar tick price >= FastEMA and current bar tick price > prevLL at the time of the Sell Signal
Tomb Reversal Signal Engulfing + RSI Momentum DetectorTomb is a fast and minimalistic reversal-detection indicator built to capture high-probability turning points in the market.
It combines engulfing candlestick patterns, a strong candle body filter, and RSI momentum analysis to generate precise BUY and SELL signals with minimal noise.
🔍 How it Works
The indicator triggers:
✅ BUY Signal
Bullish engulfing pattern appears
Candle body strength > 50% of total range (real momentum)
RSI below 50 (bearish momentum weakening)
Price decreasing over the last 5 bars (down-trend exhaustion)
✅ SELL Signal
Bearish engulfing pattern
Candle body shows strength
RSI above 50 (bullish momentum weakening)
Price increasing over the last 5 bars (up-trend exhaustion)
⚡ Why Tomb Works
Filters out weak signals using candle structure
Detects momentum shifts early
Works on all markets: Crypto, Forex, Indices, Stocks
Ideal for scalping, day trading, or swing trading
🎯 Purpose
To highlight the exact moments where the market shows exhaustion and is ready to reverse—before most traders see it.
📌 Recommended Use
For best performance:
Combine with trend tools such as EMA 200 or market structure
Look for signals at support/resistance or liquidity zones
Squeeze Momentum OmniViewSqueeze Momentum OmniView+ is an enhanced and modernized version of the classic Squeeze Momentum Indicator by LazyBear, rebuilt from the ground up in Pine Script v6.
This upgraded edition introduces OmniView color-mapping, adaptive histogram scaling, extreme detection, heat-zone alerts, and dynamic fire/ice icons, all fully synchronized with your selected visualization mode.
Key Features
1. OmniView Color Engine (Exact Price-State Matching)
Reproduces the full OmniView color logic (aqua → yellow → red), tracking market compression, expansion, and directional strength using a seamless multi-gradient system.
2. Dual Histogram Modes
Choose how the histogram is normalized:
Price-State Mode: Colors reflect price position within its recent range.
Self-Normalized Mode: Colors adapt to the histogram’s own momentum curve.
Both modes automatically adjust alerts, extremes, and icons.
3. Enhanced Squeeze Logic
The script includes the classic squeeze states (ON / OFF / Neutral) with clean visual dots and improved logic for precise state transitions.
4. Adaptive Extreme Detection (Upper & Lower Extremes)
Detects when price or momentum sets new highs/lows according to the active mode.
Automatically draws 🔥 fire labels near upper extremes and ❄️ ice labels near lower extremes, with:
Adaptive or fixed offsets
Customizable sizes
Optional dimming on momentum fade
Icon colors matching the histogram
5. Full Alert Suite
Includes alerts for:
New Upper / Lower Extremes
Heat-Zone Crossings (25%, 50%, 75%)
Momentum Turning Up / Down
Zero-Line Crossovers
Squeeze ON / OFF
All alert conditions adapt dynamically to the mode selected.
6. Clean, modern, and fully customizable
Every visual element—colors, transparency, icon sizing, offsets, squeeze dots, fades—can be adjusted from the settings panel.
What This Indicator Helps You See
Momentum acceleration and deceleration
Market compression/expansion phases
Heat levels in the current price context
Momentum extremes that often signal turning points
Trend continuation or exhaustion patterns
High-precision squeeze entries with visual clarity
Designed For
Traders looking for a more intelligent version of Squeeze Momentum with:
Better visual clarity
Stronger adaptive behavior
More actionable alerts
More information per bar without clutter
A special thanks to LazyBear, the original author of the Squeeze Momentum engine.
This script is not affiliated with or endorsed by him, but it extends his outstanding contribution to the TradingView community.
MACD Momentum Pro MACD Momentum Pro is an enhanced version of the classic MACD designed to help traders identify momentum strength with far greater clarity.
In addition to the traditional MACD line, Signal line, and histogram, this tool introduces two new momentum-intensity alerts:
• Strong Green – bullish momentum accelerating above the zero line
• Strong Red – bearish momentum accelerating below the zero line
These conditions allow traders to quickly spot when market pressure is truly strengthening, reducing noise and improving decision-making in trending environments.
The indicator also includes real-time alerts for:
• MACD/Signal crosses (bullish & bearish)
• MACD zero-line crosses
• Shifts between rising/falling histogram states
All moving averages (EMA or SMA) are fully customizable, and the visual histogram automatically adapts color to reflect momentum transitions.
Whether you are trading breakouts, trend reversals, or momentum continuation setups, this upgraded MACD version provides a clearer, more actionable view of market strength—while keeping the original MACD logic intact.
Buy vs Sell Volume EMA + Smart Momentum Shift (Crypto)This is a volume-based momentum indicator for crypto that:
Splits total volume into buy vs. sell volume based on candle direction.
Applies EMAs to buy/sell volume and tracks slope and acceleration of those EMAs.
Looks for moments where buyer volume momentum is improving and seller momentum is fading.
Optionally requires RSI and/or MACD confirmation, a “near recent low” location filter, and a score threshold based on several micro-conditions.
Outputs:
Colored background depending on whether buy or sell volume dominates.
EMA crossover arrows (“Buy” and “Sell”) for simpler regime shifts.
Green dots (“Strong Buy Momentum Shift”) when all filters are satisfied.
Alert conditions for the above signals.
It runs in a separate pane (overlay=false) and is explicitly designed for crypto, but works on any symbol/interval.
Trading Session IL7 Session-Based Intraday Momentum IndicatorOverview
This indicator is designed to support discretionary traders by highlighting intraday momentum phases based on price behavior and trading session context.
It is intended as a confirmation tool and not as a standalone trading system or automated strategy.
Core Concept
The script combines multiple market observations, including:
- Directional price behavior within the current timeframe
- Structural consistency in recent price movement
- Session-based filtering to focus on periods with higher activity and liquidity
Signals are only displayed when internal conditions align, helping traders avoid low-quality setups during sideways or low-momentum market phases.
How to Use
This indicator should be used to confirm existing trade ideas rather than generate trades on its own.
It can help traders:
- Identify periods where momentum is more likely to continue
- Filter out trades during unfavorable market conditions
- Align intraday execution with higher-timeframe bias
Best results are achieved when used alongside key price levels, higher-timeframe structure and proper risk management.
Limitations
This indicator does not predict future price movements.
Signals may change during active candles.
Market conditions may reduce effectiveness during extremely low volatility periods.
Language Notice
The indicator’s user interface labels are displayed in German.
This English description is provided first to comply with TradingView community script publishing rules.
Top 20 Adaptive Momentum [Trend Aligned]his script is an automated End-of-Day Momentum Dashboard designed to predict the next trading day's directional bias for the top 20 most volatile stocks. It analyzes institutional price action during the final 10 minutes of the trading session and filters signals based on the long-term trend.
How It Works
Trend Identification: The script calculates a 50-Day Moving Average proxy (using 5-minute data) to determine if a stock is in a Long-Term Uptrend or Downtrend.
Adaptive Signal Logic: Instead of a simple reversal strategy, the script adapts its prediction based on the trend context:
Trend Following: If a stock closes strong (Green) in an Uptrend, it signals Bullish Momentum (continuation).
Mean Reversion: If a stock closes strong (Green) in a Downtrend, it signals Bearish Reversion (fade the bounce).
Dip Buying: If a stock closes weak (Red) in an Uptrend, it signals Bullish Reversion (buy the dip).
Live Backtesting: The dashboard features a "Win Rate (3M)" column. This metric backtests the strategy over the past 3 months for each specific ticker, calculating the percentage of time the predicted bias resulted in a winning trade the following day.
Dashboard Columns
Ticker: The stock symbol.
Prev Day: The overall close vs. open of the previous session.
Trend (50d): The long-term trend direction (UP or DOWN).
BIAS TODAY: The actionable signal for the current session (📈 BULLISH or 📉 BEARISH).
Win Rate: The historical probability of success for this strategy on this specific stock.
Usage: Use this tool pre-market to identify high-probability setups where the previous day's closing momentum aligns with the long-term trend.
To effectively use the Top 20 Adaptive Momentum script, you need to treat it as a Pre-Market Screener. It performs the heavy lifting of analyzing trend, momentum, and historical probability instantly, giving you a "Cheat Sheet" for the trading day.
Here is a step-by-step guide on how to integrate it into your routine:
1. The Setup
Timeframe: Set your chart to 5 Minutes. The logic specifically hunts for the 15:50 (3:50 PM) and 15:55 (3:55 PM) candles, so the calculation works best on this timeframe.
Timing: Check this dashboard before the market opens (e.g., 9:00 AM EST) or shortly after the close (4:05 PM EST) to plan for the next session.
2. Reading the Dashboard Columns
Column What to Look For Actionable Insight
Trend (50d) UP (Green) or DOWN (Red) This tells you the "Big Picture." Only trade in this direction. If Trend is UP, you only want to see Bullish signals. If Trend is DOWN, you only want Bearish signals.
BIAS TODAY 📈 BULLISH Plan: Look for Long/Buy setups at the open. The algorithm predicts price will close higher today.
📉 BEARISH Plan: Look for Short/Sell setups at the open. The algorithm predicts price will close lower.
Win Rate (3M) Percentage (e.g., 65%) Confidence Filter. Only take trades on stocks with a Win Rate above 55-60%. This proves the stock historically respects this specific strategy.
3. The Strategy Scenarios (How to Trade)
Scenario A: The "Trend Continuation" (High Probability)
Dashboard: Trend is UP + Bias is BULLISH.
Context: The stock is strong long-term, and it closed strong yesterday (Momentum).
Execution: Watch for an opening gap up or an early breakout above the pre-market high. Go Long.
Scenario B: The "Dip Buy" (High Probability)
Dashboard: Trend is UP + Bias is BULLISH.
Context: The stock is strong long-term, but it pulled back yesterday (Weak Close). The script identifies this as a discount, not a reversal.
Execution: Watch for the stock to find support early. Use the "Master Sniper" (from your other script) to find a Discount Entry FVG.
Scenario C: The "Trap" (Avoid)
Dashboard: Win Rate is < 50%.
Context: The stock is choppy or news-driven. It does not follow technical momentum rules reliably.
Execution: Skip this stock. Move to the next one on the list.
4. Execution Workflow
Scan: Glance at the dashboard. Identify the 2-3 stocks with Green Bias + Green Trend (for Buys) or Red Bias + Red Trend (for Shorts).
Filter: Ensure their "Win Rate" is decent (over 55%).
Trade: Open the charts for those specific stocks. Use your execution indicators (like the Master Sniper) to time the entry on the 1-minute or 5-minute chart.
By using this dashboard, you stop guessing which stock to trade and focus entirely on executing the best setups.
Composite Market Momentum Indicator//@version=5
indicator("Composite Market Momentum Indicator", shorttitle="CMMI", overlay=false)
// Define Inputs
lenRSI = input.int(14, title="RSI Length")
lenMom = input.int(9, title="Momentum Length")
lenShortRSI = input.int(3, title="Short RSI Length")
lenShortRSISma = input.int(3, title="Short RSI SMA Length")
lenSMA1 = input.int(9, title="Composite SMA 1 Length")
lenSMA2 = input.int(34, title="Composite SMA 2 Length")
// Step 1: Create a 9-period momentum indicator of the 14-period RSI
rsiValue = ta.rsi(close, lenRSI)
momRSI = ta.mom(rsiValue, lenMom)
// Step 2: Create a 3-period RSI and a 3-period SMA of that RSI
shortRSI = ta.rsi(close, lenShortRSI)
shortRSISmoothed = ta.sma(shortRSI, lenShortRSISma)
// Step 3: Add Step 1 and Step 2 together to create the Composite Index
compositeIndex = momRSI + shortRSISmoothed
// Step 4: Create two simple moving averages of the Composite Index
sma1 = ta.sma(compositeIndex, lenSMA1)
sma2 = ta.sma(compositeIndex, lenSMA2)
// Step 5: Plot the composite index and its two simple moving averages
plot(compositeIndex, title="Composite Index", color=color.new(#f7cf05, 0), linewidth=2)
plot(sma1, title="SMA 13", color=color.new(#f32121, 0), linewidth=1, style=plot.style_line)
plot(sma2, title="SMA 33", color=color.new(#105eef, 0), linewidth=1, style=plot.style_line)
// Add horizontal lines for reference
hline(0, "Zero Line", color.new(color.gray, 50))
SuperTrend Fusion — Trend + Momentum + Volatility FilterSuperTrend Fusion — Trend + Momentum + Volatility Filter
SuperTrend Fusion — ATP is an original, multi-factor trend-filtering tool that enhances the classic SuperTrend by combining three market dimensions in one unified model:
1. Trend direction (SuperTrend)
Provides the base trend structure using ATR-based volatility bands.
2. Momentum confirmation (Average Force – adapted)
An adapted version of an open-source “Average Force” concept published on TradingView by racer8.
This component measures where closing price sits relative to recent highs/lows, smoothed to capture directional pressure.
3. Market condition filtering (Choppiness Index)
Filters out sideways, non-trending zones where SuperTrend alone typically produces false flips.
Together, these components create a cleaner, more selective system that focuses on higher-quality SuperTrend reversals, avoiding the most common whipsaws that occur during low-momentum or high-choppiness periods.
🔍 How it Works
A long signal occurs when:
- SuperTrend flips from downtrend to uptrend
- Momentum (AF) is positive (optional filter)
- The market is trending and not excessively choppy (optional filter)
A short signal triggers under the symmetrical conditions.
Filtered signals are visually marked with subtle “X” markers so traders can understand when a raw SuperTrend flip was rejected by the filters.
The indicator also includes:
Enhanced styling for better visibility
Colored bars during valid signals
Optional background highlight during choppy periods
🎯 What This Indicator Is Designed For
This tool aims to:
- Improve the quality of SuperTrend entries
- Remove many low-probability signals
- Help traders visually identify when the market has the momentum and structure required for cleaner trend continuation
It is not intended to predict markets or guarantee accuracy; rather, it provides structure and clarity for decision-making based on technical rules.
⚙️ Inputs
- ATR Length & Factor (SuperTrend)
- Average Force Period & Smoothing
- Choppiness Length & Threshold
- Option to enable/disable each filter individually
📘 Credits
This script includes an adapted version of an open-source “Average Force” function originally published on TradingView by its author, racer8.
SuperTrend and Choppiness Index components are derived from classical, public-domain formulas.
📌 Important Notes
This indicator is not a strategy and does not guarantee performance.
Signals are based on historical calculations only and do not use lookahead.
Past performance does not guarantee future results.
Always test different assets and timeframes before using in live conditions.
👍 Recommended Usage
For a clean experience:
- Use on standard candlestick charts
- Avoid non-standard chart types (Renko, Heikin Ashi, Kagi, Range)
- Combine with your own risk management and trade planning
IU Momentum OscillatorDESCRIPTION:
The IU Momentum Oscillator is a specialized trend-following tool designed to visualize the raw "energy" of price action. Unlike traditional oscillators that rely solely on closing prices relative to a range (like RSI), this indicator calculates momentum based on the ratio of bullish candles over a specific lookback period.
This "Neon Edition" has been engineered with a focus on visual clarity and aesthetic depth. It utilizes "Shadow Plotting" to create a glowing effect and dynamic "Trend Clouds" to highlight the strength of the move. The result is a clean, modern interface that allows traders to instantly gauge market sentiment—whether the bulls or bears are in control—without cluttering the chart with complex lines.
USER INPUTS:
- Momentum Length (Default: 20): The number of past candles analyzed to count bullish occurrences.
- Momentum Smoothing (Default: 20): An SMA filter applied to the raw data to reduce noise and provide a cleaner wave.
- Signal Line Length (Default: 5): The length of the EMA signal line used to generate crossover signals and the "Trend Cloud."
- Overbought / Oversold Levels (Default: 60 / 40): Thresholds that define extreme market conditions.
- Colors: Fully customizable Neon Cyan (Bullish) and Neon Magenta (Bearish) inputs to match your chart theme.
LONG CONDITION:
- Signal: A Buy signal is indicated by a small Cyan Circle.
- Logic: Occurs when the Main Momentum Line (Glowing) crosses ABOVE the Grey Signal Line.
- Visual Confirmation: The "Trend Cloud" turns Cyan and expands, indicating that bullish momentum is accelerating relative to the recent average.
SHORT CONDITIONS:
- Signal: A Sell signal is indicated by a small Magenta Circle.
- Logic: Occurs when the Main Momentum Line (Glowing) crosses BELOW the Grey Signal Line.
- Visual Confirmation: The "Trend Cloud" turns Magenta, indicating that bearish pressure is increasing.
WHY IT IS UNIQUE:
1. Candle-Count Logic: Most oscillators calculate price distance. This indicator calculates price participation (how many candles were actually green vs red). This offers a different perspective on trend sustainability.
2. Optimized Performance: The script uses math.sum functions rather than heavy for loops, ensuring it loads instantly and runs smoothly on all timeframes.
3. Visual Hierarchy: It uses dynamic gradients and transparency (Alpha channels) to create a "Glow" and "Cloud" effect. This makes the chart easier to read at a glance compared to flat, single-line oscillators.
HOW USER CAN BENEFIT FROM IT:
- Trend Confirmation: Traders can use the "Trend Cloud" to stay in trades longer. As long as the cloud is thick and colored, the trend is strong.
- Divergence Spotting: Because this calculates momentum differently than RSI, it can often show divergences (price goes up, but the count of bullish candles goes down) earlier than standard tools.
- Scalping: The crisp crossover signals (Circles) provide excellent entry triggers for scalpers on lower timeframes when combined with key support/resistance levels.
DISCLAIMER:
This source code and the information presented here are for educational and informational purposes only. It does not constitute financial, investment, or trading advice.
Trading in financial markets involves a high degree of risk and may not be suitable for all investors. You should not rely solely on this indicator to make trading decisions. Always perform your own due diligence, manage your risk appropriately, and consult with a qualified financial advisor before executing any trades.
MACD Momentum Structure & Volume Profile Sniper [MTF]**Description and Methodology**
This script offers a unique approach to Market Structure by moving away from traditional fractal-based highs and lows (which can be noisy). Instead, it utilizes **MACD Momentum Swings** to identify significant structural points, combined with an automated Fixed Range Volume Profile to pinpoint high-probability entry zones.
**1. Why MACD Structure? (The Core Concept)**
Traditional "ZigZag" or Fractal indicators rely solely on price action, often leading to fake-outs during low-volume consolidation.
* This script defines a "Swing High" only when the MACD Histogram crosses below zero (Momentum shifts Bearish).
* This script defines a "Swing Low" only when MACD crosses above zero (Momentum shifts Bullish).
By linking structure to momentum, we filter out weak price movements and focus on the true "heartbeat" of the trend.
**2. The "Mashup" Synergy: Structure + Volume + Logic**
This is not a random combination of indicators. Each component serves a specific step in the trading execution sequence:
* **Step 1 (Structure):** The script identifies a Change of Character (CHoCH) based on the MACD peaks described above.
* **Step 2 (Liquidity/Value):** When a CHoCH occurs, the script *automatically* draws a **Fixed Range Volume Profile (FRVP)** specifically covering the impulse leg that caused the break. This reveals the "Point of Control" (POC)—the hidden price level where the most volume occurred during the move.
* **Step 3 (The Sniper Entry):** The script creates a "Zone" around that POC. It then waits for Price to retrace into this zone.
* **Step 4 (Confirmation):** Once the zone is touched, the script monitors a lower timeframe (User selectable, default M1) for a fresh MACD crossover to trigger the final entry signal.
**Features**
* **Multi-Timeframe Dashboard:** Monitor the MACD Trend direction across 4 different timeframes simultaneously.
* **Dynamic Trendlines:** Automatically connects confirmed MACD peaks to visualize trend integrity.
* **Fibo Time Zones:** Projects potential future pivot points based on the duration of the previous swing.
* **Alert System:** Integrated alerts for Zone Touches and "Sniper" entries (Zone Touch + LTF Momentum Confirmation).
**How to Use**
1. **Identify Trend:** Look for the CHoCH labels. Green indicates a shift to Bullish, Red to Bearish.
2. **Wait for Pullback:** Do not chase the break. Wait for price to return to the Yellow POC Zone generated by the Volume Profile.
3. **Entry Trigger:** Watch for the "BUY" or "SELL" marks. These appear only when price hits the zone AND the lower-timeframe momentum aligns with the trade direction.
**Settings & Inputs**
* **Global MACD:** Adjust the sensitivity of the swing detection (Default 12, 26, 9).
* **Sniper Entry:** Select the timeframe used for the final confirmation (e.g., use M1 confirmation for an H1 chart structure).
* **VP Settings:** Customize how the Volume Profile looks on the chart.
*Disclaimer: This script is intended for educational purposes and market analysis. It does not provide financial advice.*
Relative Volume EMA (RVOL)Relative Volume EMA (RVOL) measures the current bar’s volume relative to its typical volume over a selected lookback period.
It helps traders identify whether a price move is supported by real participation or if it’s occurring on weak, low-quality volume.
This version uses:
RVOL = Current Volume ÷ Volume EMA
Volume EMA Length: adjustable
Signal Threshold: a customizable horizontal line (default = 1.2)
How to Use
1. RVOL > 1.2 → High-Quality Momentum
A value above 1.2 indicates that the current bar has at least 20% more volume than normal, suggesting:
Strong conviction
Algorithmic activity
Momentum-backed breakout or breakdown
Higher probability trend continuation
These bars are ideal for confirming entries after a technical setup (e.g., pullback, engulfing pattern, Ichimoku trend confirmation, etc.).
2. RVOL < 1.0 → Weak or Low-Quality Move
When RVOL is below 1.0:
Volume is below average
Moves are more likely to fail or reverse
Breakouts are unreliable
Triggers lack institutional participation
These bars are best avoided for trade entries.
Why This Indicator Is Useful
In many strategies, price alone is not enough.
RVOL acts as a filter to ensure that your signals occur during times when the market is actually active and committed.
Typical use cases:
Confirm trend-following entries
Validate pullbacks and breakout candles
Filter out low-volume chop
Identify session-based volume surges
Improve risk-to-reward quality by entering only during true momentum
Recommended Settings
EMA Length: 20
Threshold Line: 1.2
Works well on Forex, Crypto, and Indices
Best used on 15m, 30m, 1H, and 4H charts
Mustang Algo - Momentum Trend Zone Backtest🐎 MUSTANG ALGO - Momentum Trend Zone Strategy
A complete trading system combining MACD momentum analysis with visual trend zones, full backtesting capabilities, and advanced risk management tools.
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🔹 OVERVIEW
Mustang Algo transforms traditional MACD analysis into a powerful visual trading system. It instantly identifies market bias through colored background zones and provides clear entry/exit signals with customizable stop loss and take profit management.
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🔹 KEY FEATURES
✅ Visual Trend Zones (Green = Bullish | Red = Bearish)
✅ Clear Buy/Sell Triangles on Chart
✅ Full Backtesting Engine
✅ Multiple Stop Loss Types
✅ Multiple Take Profit Types
✅ Trailing Stop Option
✅ Time Filter for Backtesting
✅ Real-time Info Panel
✅ Customizable Alerts
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🔹 HOW IT WORKS
The strategy uses a smoothed MACD system to detect trend changes:
- MACD Line (White): Fast EMA minus Slow EMA - shows raw momentum
- Signal Line (Yellow): EMA of MACD - shows smoothed trend direction
- Trend Zone: Changes when the smoothed signal line crosses zero
- Entry Signals: Generated at zone transitions
When the trend line crosses above zero → GREEN zone → BUY signal 🔺
When the trend line crosses below zero → RED zone → SELL signal 🔻
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🔹 STOP LOSS OPTIONS
🛑 Percentage: Fixed percentage from entry price
🛑 ATR-Based: Dynamic SL based on market volatility
🛑 Fixed Points: Set number of points/pips
🛑 Swing Low/High: Uses recent swing levels as stops
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🔹 TAKE PROFIT OPTIONS
🎯 Percentage: Fixed percentage target
🎯 ATR-Based: Dynamic TP based on volatility
🎯 Fixed Points: Set number of points/pips
🎯 Risk Reward: Automatic TP based on R:R ratio (e.g., 2:1, 3:1)
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🔹 TRAILING STOP
📈 Percentage-Based: Trail by a fixed percentage
📈 ATR-Based: Trail using ATR multiplier for dynamic adjustment
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🔹 SETTINGS
MACD Parameters:
- Fast Length (default: 12)
- Slow Length (default: 26)
- Signal Length (default: 9)
- Trend Smoothing (default: 5)
Risk Management:
- Enable/Disable Stop Loss
- Enable/Disable Take Profit
- Enable/Disable Trailing Stop
- Customize all SL/TP parameters
Visual Options:
- Show/Hide Buy/Sell Triangles
- Show/Hide SL/TP Lines
- Show/Hide Labels
Time Filter:
- Set Start Date for backtest
- Set End Date for backtest
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🔹 SIGNALS EXPLAINED
🟢 GREEN TRIANGLE (Below Bar):
Bullish zone detected - Consider LONG entry
🔴 RED TRIANGLE (Above Bar):
Bearish zone detected - Consider SHORT entry
🟢 GREEN BACKGROUND:
Currently in bullish trend zone
🔴 RED BACKGROUND:
Currently in bearish trend zone
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🔹 INFO PANEL
The real-time info panel (top right) displays:
- Current Trend Zone status
- MACD value
- Signal Line value
- Active SL Type
- Active TP Type
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🔹 ALERTS
Set up alerts for:
🔔 Buy Signals: "🐎 Mustang Algo: BUY Signal on {ticker} at {price}"
🔔 Sell Signals: "🐎 Mustang Algo: SELL Signal on {ticker} at {price}"
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🔹 BEST PRACTICES
1. Use higher timeframes (1H, 4H, Daily) for more reliable signals
2. Combine with price action and support/resistance levels
3. Adjust ATR multipliers based on asset volatility
4. Use Risk Reward ratio for consistent risk management
5. Backtest on your preferred asset before live trading
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🔹 RECOMMENDED TIMEFRAMES
⏱️ Scalping: 5M, 15M (more signals, more noise)
⏱️ Day Trading: 1H, 4H (balanced signals)
⏱️ Swing Trading: Daily, Weekly (fewer but stronger signals)
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🔹 MARKETS
Works on all markets:
📈 Forex
📈 Crypto
📈 Stocks
📈 Indices
📈 Commodities
📈 Futures
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🐎 RIDE THE TREND WITH MUSTANG ALGO!
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⚠️ DISCLAIMER
This indicator/strategy is for educational and informational purposes only. It is not financial advice. Trading involves substantial risk of loss and is not suitable for all investors. Past performance is not indicative of future results. Always use proper risk management, do your own research, and consider consulting a financial advisor before making any trading decisions. Use at your own risk.
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📝 VERSION HISTORY
v1.0 - Initial Release
- MACD-based trend detection
- Visual trend zones
- Multiple SL/TP options
- Full backtesting support
- Trailing stop functionality
- Time filter
- Info panel
- Alert system
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💬 FEEDBACK
If you find this strategy useful, please leave a comment or suggestion!
Your feedback helps improve future updates.
🐎 Happy Trading!
