OPEN-SOURCE SCRIPT
Momentum & Money Flow Strategy with Triple EMA Smoothing
Hi, this is a Momentum and Money flow strategy that works in all time frames.
Explanation:
1. Triple EMA Smoothing:
• The raw momentum is calculated using ta.roc().
• The line is then smoothed by applying three successive exponential moving averages via ta.ema(). This chained approach helps reduce noise and produce a smoother signal line.
2. Trading Logic:
• Long Signals: Occur when the smoothed momentum is positive and the MFI is above the middle level.
• Short Signals: Occur when the smoothed momentum is negative and the MFI is below the middle level.
• Exits are triggered based on turning point conditions in both momentum and the MFI.
3. Plotting:
• The smoothed momentum is plotted in blue, and the MFI is plotted in orange, with a horizontal line marking the MFI middle level for reference.
This forward-thinking approach should better capture the underlying market momentum while reducing noise. Please backtest and fine-tune the parameters to align with your trading style on the 7-minute chart.
Explanation:
1. Triple EMA Smoothing:
• The raw momentum is calculated using ta.roc().
• The line is then smoothed by applying three successive exponential moving averages via ta.ema(). This chained approach helps reduce noise and produce a smoother signal line.
2. Trading Logic:
• Long Signals: Occur when the smoothed momentum is positive and the MFI is above the middle level.
• Short Signals: Occur when the smoothed momentum is negative and the MFI is below the middle level.
• Exits are triggered based on turning point conditions in both momentum and the MFI.
3. Plotting:
• The smoothed momentum is plotted in blue, and the MFI is plotted in orange, with a horizontal line marking the MFI middle level for reference.
This forward-thinking approach should better capture the underlying market momentum while reducing noise. Please backtest and fine-tune the parameters to align with your trading style on the 7-minute chart.
Script open-source
In pieno spirito TradingView, l'autore di questo script lo ha pubblicato open-source, in modo che i trader possano comprenderlo e testarlo. Complimenti all'autore! Puoi usarlo gratuitamente, ma il riutilizzo di questo codice nelle pubblicazioni è disciplinato dal nostro Regolamento. Per aggiungerlo al grafico, mettilo tra i preferiti.
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