Momentum Tracker

Momentum Tracker - Advanced Multi-Timeframe Momentum Oscillator
Overview
The Momentum Tracker is a sophisticated momentum oscillator that employs a proprietary triple-layer exponential smoothing algorithm to measure market momentum with exceptional precision. This indicator transforms complex price movements into clear, actionable signals through an intuitive color-coded display system.
Key Features
• Advanced Calculation Engine

Triple-layer exponential smoothing for noise reduction
Proprietary momentum normalization algorithm
Oscillates smoothly between 0-100

• Multi-Timeframe Analysis (NEW!)

Analyze momentum from any timeframe on your current chart
Perfect for confirming higher timeframe trends on lower timeframe entries
Timeframe display badge for easy reference

• Dynamic Visual System

Blue: Rising momentum (bullish pressure)
Red: Falling momentum (bearish pressure)
Yellow: Neutral/consolidating (no clear direction)

• Reference Levels

90: Overbought zone
50: Equilibrium line
10: Oversold zone

• Professional Features

No repainting - uses only confirmed data
Works on all markets (Forex, Crypto, Stocks, Indices)
Compatible with all timeframes (1m to Monthly)
Clean, uncluttered display

How It Works
The Momentum Tracker uses a sophisticated multi-stage process:

Price Input: Calculates using typical price (HLC/3) for balanced market representation
Triple Smoothing: Applies three layers of adaptive exponential smoothing to filter market noise while preserving trend integrity
Momentum Normalization: Converts raw momentum into a bounded 0-100 oscillator
Dynamic Coloring: Instantly visualizes momentum direction through color changes

Trading Applications
1. Trend Identification

Blue line = Uptrend momentum
Red line = Downtrend momentum
Yellow line = Consolidation/indecision

2. Overbought/Oversold Conditions

Readings above 90 suggest overbought conditions
Readings below 10 suggest oversold conditions
Best used in conjunction with price action

3. Momentum Divergences

Spot regular and hidden divergences
Early warning of potential trend reversals
Confirmation tool for other signals

4. Multi-Timeframe Confirmation

View daily momentum on hourly charts
Confirm entry signals with higher timeframe momentum
Avoid trades against higher timeframe momentum

5. Entry/Exit Timing

Color changes can signal momentum shifts
Midline (50) crosses indicate trend bias changes
Extreme readings suggest potential reversal zones

Settings
• Timeframe: Select any timeframe for momentum calculation (leave empty for chart timeframe)
Best Practices

DO combine with price action and support/resistance levels
DO use multiple timeframe analysis for confirmation
DO wait for clear color changes before making decisions
DON'T use as a standalone trading system
DON'T trade solely based on overbought/oversold levels
DON'T ignore overall market context

Pro Tips

Divergence Trading: Look for momentum making lower highs while price makes higher highs (bearish divergence) or vice versa
Trend Following: Trade in the direction of the momentum color on higher timeframes
Range Trading: Use extreme readings (>90 or <10) for mean reversion trades in ranging markets
Confluence: Best signals occur when momentum aligns across multiple timeframes

Technical Details

Version: 6.0 (Pine Script v6)
Overlay: False (displays in separate pane)
Repainting: No
Calculation: Based on typical price (HLC/3)
Update Frequency: Real-time with each price tick

Risk Disclaimer
Trading financial instruments involves substantial risk and may result in loss of capital. This indicator is provided for informational and educational purposes only and should not be construed as investment advice. Always:

Use proper risk management

Updates
Latest Update: Added multi-timeframe functionality allowing momentum analysis from any timeframe on your current chart view.

Tags: #momentum #oscillator #trend #multitimeframe #norepaint #exponentialsmoothing #momentumindicator #technicalanalysis #trading #forex #crypto #stocks