Accumulation Momentum IndicatorEveryone wants to be in a trend, I think this indicator does a great job at showing that key momentum that traders try and capitalize on everyday. I used a Stochastic Momentum Indicator (SMI) indicator. It's a lot like a slower MACD which allows me to capitalize on changing momentum. My goal was to make an indicator that was able to use a weighted mean of many accumulation/momentum indicators. This would give me a well rounded look to really see what direction the momentum and volume is heading.
I did some research on some of the best Accumulation and Momentum Indicators. I landed on 4.
The Accumulation Distribution line which measures the cumulative flow of money in or out of a security. It helps show how quickly money is going in and out of a commodity. The line moving up quickly indicates fast Accumulation while the A/C line is moving down quickly is shows falling Distribution. This can show the momentum and accumulation of a commodity in short and long term based off of Volume.
The On Balance Volume, OBV is a combination of Price Movement and Volume. If price closes higher then the previous bar volume is added while if the price closes lower volume is subtracted. This gives us an overall tally of whether volume is increasing with price or slowing down the momentum in the direction of the current trend. This gives us the ability to see if volume is supporting the price increasing (beginning/middle of a trend) or price is slowing down even though it is still heading in the direction of the current trend (signaling the end of the current trend).
The Force Index, this indicator measures the overall strength of the price movements. It does this by a calculation of price and volume. The close of the current bar subtracted by the previous multiplied by the volume. The result gives us either strong upward or downward motion. This adds magnitude to the overall movement/momentum of the indicator.
Lastly but most certainly not least is the Momentum indicator, (Price Momentum) a simple indicator that shows you the difference between the current close price and the close price from a specified period ago (Most commonly 14 periods/bars ago). Having this indicator is a must because it shows the speed at which price is accelerating or decelerating.
These 4 indicators together help round out the current volume, price movements, accumulation, and momentum of the current market. Since these indicators all have different scales and calculations I had to Normalize the Values to a 0-100 scale. This gives us 1 line and a much more readable easy to understand indicator. After they were normalized I gave them a weighted average that you can control. So lets say you cared more about the Force Index and the OBV rather then the Momentum and the Accumulation Distribution indicators, you would be able to give them more weight in the overall calculation as well as 0 out those you don't even want involved.
I hope the flexibility and the combination of 4 strong Accumulation Momentum indicators helps you better gauge the direction a commodity might head. The way it's used is when the Accumulation Momentum line is Above 50 buying pressure is stronger then selling pressure. An Accumulation Momentum line Below 50 suggests that distribution is more dominant in the current market. This indicator combines four different methods of analyzing price and volume to give you a single composite momentum score, making it easier to visualize when a commodity is being accumulated or distributed and how quickly this process is happening. It helps you track market sentiment based on both price movement and volume, with a clear, visual representation of buying and selling pressure.
Please let me know what you think and how you think I might be able to improve the script. Enjoy!
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Adaptive Squeeze Momentum StrategyThe Adaptive Squeeze Momentum Strategy is a versatile trading algorithm designed to capitalize on periods of low volatility that often precede significant price movements. By integrating multiple technical indicators and customizable settings, this strategy aims to identify optimal entry and exit points for both long and short positions.
Key Features:
Long/Short Trade Control:
Toggle Options: Easily enable or disable long and short trades according to your trading preferences or market conditions.
Flexible Application: Adapt the strategy for bullish, bearish, or neutral market outlooks.
Squeeze Detection Mechanism:
Bollinger Bands and Keltner Channels: Utilizes the convergence of Bollinger Bands inside Keltner Channels to detect "squeeze" conditions, indicating a potential breakout.
Dynamic Squeeze Length: Calculates the average squeeze duration to adapt to changing market volatility.
Momentum Analysis:
Linear Regression: Applies linear regression to price changes over a specified momentum length to gauge the strength and direction of momentum.
Dynamic Thresholds: Sets momentum thresholds based on standard deviations, allowing for adaptive sensitivity to market movements.
Momentum Multiplier: Adjustable setting to fine-tune the aggressiveness of momentum detection.
Trend Filtering:
Exponential Moving Average (EMA): Implements a trend filter using an EMA to align trades with the prevailing market direction.
Customizable Length: Adjust the EMA length to suit different trading timeframes and assets.
Relative Strength Index (RSI) Filtering:
Overbought/Oversold Signals: Incorporates RSI to avoid entering trades during overextended market conditions.
Adjustable Levels: Set your own RSI oversold and overbought thresholds for personalized signal generation.
Advanced Risk Management:
ATR-Based Stop Loss and Take Profit:
Adaptive Levels: Uses the Average True Range (ATR) to set stop loss and take profit points that adjust to market volatility.
Custom Multipliers: Modify ATR multipliers for both stop loss and take profit to control risk and reward ratios.
Minimum Volatility Filter: Ensures trades are only taken when market volatility exceeds a user-defined minimum, avoiding periods of low activity.
Time-Based Exit:
Holding Period Multiplier: Defines a maximum holding period based on the momentum length to reduce exposure to adverse movements.
Automatic Position Closure: Closes positions after the specified holding period is reached.
Session Filtering:
Trading Session Control: Limits trading to predefined market hours, helping to avoid illiquid periods.
Custom Session Times: Set your preferred trading session to match market openings, closings, or specific timeframes.
Visualization Tools:
Indicator Plots: Displays Bollinger Bands, Keltner Channels, and trend EMA on the chart for visual analysis.
Squeeze Signals: Marks squeeze conditions on the chart, providing clear visual cues for potential trade setups.
Customization Options:
Indicator Parameters: Fine-tune lengths and multipliers for Bollinger Bands, Keltner Channels, momentum calculation, and ATR.
Entry Filters: Choose to use trend and RSI filters to refine trade entries based on your strategy.
Risk Management Settings: Adjust stop loss, take profit, and holding periods to match your risk tolerance.
Trade Direction Control: Enable or disable long and short trades independently to align with your market strategy or compliance requirements.
Time Settings: Modify the trading session times and enable or disable the time filter as needed.
Use Cases:
Trend Traders: Benefit from aligning entries with the broader market trend while capturing breakout movements.
Swing Traders: Exploit periods of low volatility leading to significant price swings.
Risk-Averse Traders: Utilize advanced risk management features to protect capital and manage exposure.
Disclaimer:
This strategy is a tool to assist in trading decisions and should be used in conjunction with other analyses and risk management practices. Past performance is not indicative of future results. Always test the strategy thoroughly and adjust settings to suit your specific trading style and market conditions.
Trend Momentum Indicator with MACD ConfirmationTrend Momentum Indicator with MACD Confirmation
Overview: The Trend Momentum Indicator with MACD Confirmation is a versatile trading tool designed to help traders identify potential buy and sell signals in the market based on the interaction between price action, a Simple Moving Average (SMA), and the Moving Average Convergence Divergence (MACD) indicator. This strategy aims to enhance trading decisions by waiting for MACD confirmation before executing trades, thereby reducing false signals.
Components:
Simple Moving Average (SMA):
The SMA is calculated over a user-defined period (default: 20 bars) and serves as a trend indicator. It provides a smoothed representation of price action and helps traders identify the overall market direction.
MACD:
The MACD is calculated using standard parameters (12 for fast length, 26 for slow length, and 9 for signal length) but can be adjusted to suit individual trading preferences. The MACD consists of two lines:
MACD Line: The difference between the fast and slow EMAs.
Signal Line: An EMA of the MACD Line, which helps indicate buy and sell conditions.
Buy and Sell Signals:
Buy Signal: A buy signal is triggered when the price crosses above the SMA, coupled with the MACD line crossing above the signal line, indicating a bullish momentum.
Sell Signal: A sell signal occurs when the price crosses below the SMA, alongside the MACD line crossing below the signal line, indicating a bearish momentum.
Visual Features:
The SMA is plotted on the main price chart, allowing traders to easily visualize trend direction.
Buy signals are indicated by green triangle shapes below the price bars, while sell signals are shown by red triangle shapes above the price bars.
Optionally, a MACD histogram can be plotted to visualize the difference between the MACD line and the signal line, helping to confirm trade signals visually.
Usage:
This indicator is suitable for various trading styles, including day trading, swing trading, and trend-following strategies. It can be applied to any financial instrument, including stocks, forex, and cryptocurrencies.
Traders should consider combining this indicator with additional tools and analysis to enhance decision-making and manage risk effectively.
Volume Surge Momentum Detector [CHE]Volume Surge Momentum Detector – Discover explosive price movements fueled by sudden volume spikes.
Volume Surge Momentum Detector – Capture Key Inflection Points Using Volume Dynamics
Description:
This indicator helps traders identify highprobability entries by focusing on volume dynamics. Significant price movements often occur when interest in a stock rises, and this is reflected in volume spikes. The Volume Analysis Indicator is designed to detect key inflection points such as breakouts and capitulations by analyzing the relationship between volume and price. It enables traders to avoid false breakouts, identify trend exhaustion, and make informed trading decisions.
Key Features:
VolumeBased Inflection Points: The indicator tracks the volume levels to detect when there is significant interest in a stock. High volume signals increased market participation, often preceding large price moves.
Breakout Detection: It identifies breakouts by detecting price moves beyond a key level (the highest price over a certain period) along with a volume spike, indicating strong momentum.
Capitulation Detection: Capitulation is detected when a strong trend weakens and reverses with increased volume, signaling potential trend exhaustion.
Volume Thresholds: By using statistical measures, the indicator identifies unusually high or low volume based on the average volume and standard deviations, helping traders to spot major turning points in the market.
This tool simplifies volume bar analysis by automatically highlighting significant volume events, which often indicate large upcoming price movements.
Detailed Breakdown:
1. Volume as a Catalyst for Price Movements:
Volume is essential for price action. Without sufficient volume, price moves may not be sustained. This indicator highlights moments of increased market interest by tracking significant volume increases, helping traders stay ahead of major price movements.
2. Breakouts and Capitulation Detection:
Breakout: Detected when the volume exceeds an upper threshold (based on two standard deviations above the average volume) and the price breaks above the highest close of the previous period. These moments are marked with green labels on the chart.
Capitulation: Detected when volume increases significantly but the trend cannot sustain itself, and the price reverses below the lowest close of the previous period. These moments are marked with red labels on the chart, indicating potential trend exhaustion.
3. Sentiment and Market Dynamics:
Market sentiment can lead to price inflections when one side of the market becomes overbought or exhausted. Volume spikes in either direction provide clues as to whether a trend will continue or reverse. This indicator helps identify these critical points by monitoring volume patterns.
4. Visual Representation:
Green Bars: High volume indicating strong market interest or momentum.
Red Bars: Low volume, signaling potential lack of interest or exhaustion.
Gray Bars: Normal volume, helping to distinguish significant market events from regular activity.
Breakout and Capitulation Labels: Green labels for breakouts and red labels for capitulation points are shown directly on the chart for easy reference.
5. Alerts for Key Signals:
Breakout Alert: Notifies traders when a breakout occurs with strong volume, indicating a potential for significant price movement.
Capitulation Alert: Alerts traders when a capitulation occurs, suggesting a trend reversal.
High and Low Volume Alerts: Receive notifications when the volume exceeds the upper or lower thresholds, highlighting key moments of market interest or disinterest.
Why This Indicator Matters:
Traders often miss significant price moves or enter too late. This indicator helps traders by identifying highprobability entry points before the stock makes major moves. By focusing on volume spikes, the indicator provides insight into market sentiment and allows traders to act quickly.
How It Works:
1. Calculate Volume Significance: The indicator calculates the average volume over a userdefined period (`length`) and identifies significant deviations using standard deviations.
2. Mark Key Levels: Breakouts are detected when price moves above recent highs with significant volume, while capitulation is flagged when trends show exhaustion with a volume spike and price reversal.
3. Receive Alerts: Traders can set up alerts for key events like breakouts, capitulations, and significant volume changes to stay informed in realtime.
Perfect For:
Active traders looking to spot early market movements driven by volume changes.
Traders who want to avoid false breakouts by confirming price moves with volume spikes.
Swing traders identifying capitulation points to reduce exposure or enter positions on trend reversals.
How to Use:
Customize the "Average Period" to determine how many bars are used to calculate the average volume.
Adjust the "Multiplier for Standard Deviation" to finetune the sensitivity of high and low volume detection.
Enable alerts to receive realtime notifications for breakouts, capitulations, or volume spikes.
Conclusion:
Volume analysis is essential to understanding stock movements. This indicator simplifies the process of identifying breakouts and capitulation points by using volume dynamics. Whether you are a beginner looking for powerful tools or an experienced trader refining your strategy, this indicator offers valuable insights into market behavior driven by volume.
Additional Insights:
1. Statistical Significance: The use of standard deviations to identify high and low volume gives the indicator a statistical basis, helping to reduce noise and false signals.
2. Flexible Alerts: Traders can set up custom alerts based on their trading preferences, whether they focus on volume changes or price breakouts and reversals.
This detailed description now includes all the important aspects of the script without referencing any external sources, focusing solely on the functionality and trading strategy the script provides.
Best regards
Chervolino
RSI Momentum [CrossTrade]The RSI Momentum indicator generates buy and sell signals based on the Relative Strength Index (RSI) crossing specific thresholds. The Key difference is that we're using RSI overbought and oversold readings as the foundation for finding continuation signals in the same direction of that momentum. This solves the issue of trying to buy the bottom or sell the top and offsets any oscillators main weakness, divergence and false signals in a strong trend.
Key Parameters:
RSI Length: Determines the calculation period for the RSI.
Overbought Threshold: The RSI level above which the asset is considered overbought.
Momentum Loss Threshold for Buy: The RSI level below which a loss in upward momentum is indicated, triggering a potential buy signal.
Oversold Threshold: The RSI level below which the asset is considered oversold.
Momentum Loss Threshold for Sell: The RSI level above which a loss in downward momentum is indicated, triggering a potential sell signal.
Allow Additional Retracement Signals: A toggle to allow more than one signal within a certain number of bars after the first signal.
Max Additional Signals: The maximum number of additional signals allowed after the first signal.
Buy Signal Logic:
Initial Signal: Generated when the RSI first exceeds the overbought threshold and then falls below the momentum loss buy threshold. Defaults are 70 for the overbought threshold and 60 for the retracement level.
Additional Signals for Deeper Retracements: If enabled, the script shows additional buy signals within the maximum limit set by Max Additional Signals. These additional signals are shown only if each new signal's bar has a lower low than the previous signal's bar.
Sell Signal Logic:
Initial Signal: Similar to the buy signal, a sell signal is generated when the RSI first drops below the oversold threshold and then rises above the momentum loss sell threshold. Defaults are 30 for the oversold threshold and 40 for the retracement level.
Additional Signals for Deeper Retracements: If enabled, additional sell signals are shown, limited by Max Additional Signals, and only if each new signal's bar has a higher high than the previous signal's bar.
Continuation Signals in Strong Trends:
The script allows for a new series of signals (starting with the first signal again) when the RSI pattern repeats. For buy signals, this means going above the overbought and then below the momentum loss buy threshold. For sell signals, it's dropping below oversold and then above the momentum loss sell threshold.
Alerts:
The script includes alert conditions for both buy and sell signals, which can be configured in the TradingView alerts.
Approximate Spectral Entropy-Based Market Momentum (SEMM)Overview
The Approximate Spectral Entropy-Based Market Momentum (SEMM) indicator combines the concepts of spectral entropy and traditional momentum to provide traders with insights into both the strength and the complexity of market movements. By measuring the randomness or predictability of price changes, SEMM helps traders understand whether the market is in a trending or consolidating state and how strong that trend or consolidation might be.
Key Features
Entropy Measurement: Calculates the approximate spectral entropy of price movements to quantify market randomness.
Momentum Analysis: Integrates entropy with rate-of-change (ROC) to highlight periods of strong or weak momentum.
Dynamic Market Insight: Provides a dual perspective on market behavior—both the trend strength and the underlying complexity.
Customizable Parameters: Adjustable window length for entropy calculation, allowing for fine-tuning to suit different market conditions.
Concepts Underlying the Calculations
The indicator utilizes Shannon entropy, a concept from information theory, to approximate the spectral entropy of price returns. Spectral entropy traditionally involves a Fourier Transform to analyze the frequency components of a signal, but due to Pine Script limitations, this indicator uses a simplified approach. It calculates log returns over a rolling window, normalizes them, and then computes the Shannon entropy. This entropy value represents the level of disorder or complexity in the market, which is then multiplied by traditional momentum measures like the rate of change (ROC).
How It Works
Price Returns Calculation: The indicator first computes the log returns of price data over a specified window length.
Entropy Calculation: These log returns are normalized and used to calculate the Shannon entropy, representing market complexity.
Momentum Integration: The calculated entropy is then multiplied by the rate of change (ROC) of prices to generate the SEMM value.
Signal Generation: High SEMM values indicate strong momentum with higher randomness, while low SEMM values indicate lower momentum with more predictable trends.
How Traders Can Use It
Trend Identification: Use SEMM to identify strong trends or potential trend reversals. Low entropy values can indicate a trending market, whereas high entropy suggests choppy or consolidating conditions.
Market State Analysis: Combine SEMM with other indicators or chart patterns to confirm the market's state—whether it's trending, ranging, or transitioning between states.
Risk Management: Consider high SEMM values as a signal to be cautious, as they suggest increased market unpredictability.
Example Usage Instructions
Add the Indicator: Apply the "Approximate Spectral Entropy-Based Market Momentum (SEMM)" indicator to your chart.
Adjust Parameters: Modify the length parameter to suit your trading timeframe. Shorter lengths are more responsive, while longer lengths smooth out the signal.
Analyze the Output: Observe the blue line for entropy and the red line for SEMM. Look for divergences or confirmations with price action to guide your trades.
Combine with Other Tools: Use SEMM alongside moving averages, support/resistance levels, or other indicators to build a comprehensive trading strategy.
Volume, Volatility, and Momentum Metrics IndicatorVolume, Volatility, and Momentum Metrics Indicator
Welcome to our comprehensive TradingView indicator designed to provide traders with essential volume, volatility, and momentum metrics. This powerful tool is ideal for traders looking to enhance their market analysis by visualizing key indicators in a concise and easy-to-read format.
Key Features
1. Volume Metrics:
• Daily Dollar Volume: Understand the monetary value of the traded volume each day.
• Relative Volume (RVOL) Day: Compare the current volume to the previous day’s volume to gauge trading activity.
• Relative Volume (RVOL) 30D: Assess the average trading volume over the past 30 days.
• Relative Volume (RVOL) 90D: Evaluate the average trading volume over the past 90 days.
2. Volatility and Momentum Metrics:
• Average Daily Range (ADR) %: Measure the average daily price range as a percentage of the current price.
• Average True Range (ATR): Track the volatility by calculating the average true range over a specified period.
• Relative Strength Index (RSI): Determine the momentum by analyzing the speed and change of price movements.
3. Customizable Table Positions:
• Place the volume metrics table and the volatility/momentum metrics table in the bottom-left or bottom-right corners of your chart for optimal visibility and convenience.
Why Use This Indicator?
• Enhanced Market Analysis: Quickly assess volume trends, volatility, and momentum to make informed trading decisions.
• User-Friendly Interface: The clear and concise tables provide at-a-glance information without cluttering your chart.
• Customization Options: Choose where to display the tables to suit your trading style and preferences.
How It Works
This indicator uses advanced calculations to provide real-time data on trading volume, price range, and momentum. By displaying this information in separate, neatly organized tables, traders can easily monitor these critical metrics without diverting their focus from the main chart.
Who Can Benefit?
• Day Traders: Quickly gauge intraday trading activity and volatility.
• Swing Traders: Analyze longer-term volume trends and momentum to identify potential trade setups.
• Technical Analysts: Utilize comprehensive metrics to enhance technical analysis and trading strategies.
Get Started
To add this powerful indicator to your TradingView chart, simply search for “Volume, Volatility, and Momentum Metrics” in the TradingView public library, or use the provided link to add it directly to your chart. Enhance your trading analysis and make more informed decisions with our comprehensive TradingView indicator.
Dynamic Momentum Oscillator (DMO) [Angel Algo]Dynamic Momentum Oscillator (DMO)
OVERVIEW: The Dynamic Momentum Oscillator (DMO) is a technical indicator designed to measure the momentum of price movements in financial markets. It combines momentum calculation with dynamic range assessment to provide insights into potential trend reversals and overbought/oversold conditions.
DMO is different from classic momentum oscillators like the RSI or Stochastic Oscillator because it looks at the momentum in relation to how much the price is moving. This helps it give signals that better match what's happening in the market, especially when the market's volatility is changing.
HOW TO USE:
Interpretation:
Thresholds: Horizontal lines mark user-defined threshold levels for overbought (OB) and oversold (OS) conditions, aiding in identifying potential trend pullbacks and reversals.
DMO Line: The primary line on the indicator plot. It reflects momentum in relation to the dynamic price range. Positive values indicate bullish momentum, while negative values indicate bearish momentum.
Filled Area: The area between the DMO line and the zero line is filled with color to enhance visualization of momentum shifts.
Trading Signals:
Thresholds: Monitor for potential trend reversals when the DMO crosses above the overbought threshold or below the oversold threshold.
Crossovers: Look for buy signals when the DMO line crosses above the zero and sell signals when it crosses below.
Filled Area: The green color indicates bullish momentum, red indicates bearish momentum and gray color indicates neutral conditions.
Signals: Circles appear on the chart when the DMO crosses the overbought or oversold thresholds, indicating conditions for potential trend pullbacks or reversals.
SETTINGS:
Length: Adjust the length parameter to vary the number of periods considered in the momentum calculation.
Smoothing: Enable or disable smoothing of the DMO line using the provided option.
Thresholds: Customize the overbought and oversold threshold levels to suit specific market conditions and trading preferences.
Disclaimer: The DMO indicator serves as part of a comprehensive trading strategy and should not be solely relied upon for trading decisions. Past performance is not indicative of future results, and trading involves inherent risks.
Thange Momentum KicksTitle: Thange Momentum Kicks Indicator - Identify Strong Bullish and Bearish Candles
Description:
The Thange Momentum Kicks indicator is a small tool designed to identify strong bullish and bearish candles in a candlestick price chart. By analyzing the momentum and size of each candle, this indicator highlights potential significant price movements.
The indicator marks strong bullish candles with a "Bull Kick" label to signal their strength on price action. Similarly, strong bearish candles are identified with the "Bear Kick" label. These kicks are characterized by their size and momentum, indicating a high probability of significant price movement.
The indicator allows traders and investors to easily spot these kicks on their charts, helping them make quick decisions. It calculates the percentage momentum of each candle and compares it to the specified thresholds for bullish and bearish kicks.
Key Features:
- Identifies strong bullish and bearish candles ("Kicks") based on momentum and size.
- Customizable input parameters for setting the percentage thresholds for kicks.
- Labels and tooltips provide essential information such as momentum, percentage change, open, and close prices.
- Differentiates between bullish kicks with blue color and bearish kicks with a unique pink color.
- Plots the candles with the specified colors for easy visualization.
Instructions:
1. Look for the "Kicks" labeled candles on your chart.
2. Bullish kicks indicate strong upward momentum, while bearish kicks represent strong downward momentum.
3. Consider the size and momentum of the kicks when making trading decisions.
4. Combine the Thange Momentum Kicks indicator with other technical analysis tools for a comprehensive market analysis.
Note: The Thange Momentum Kicks indicator is most effective when used in conjunction with other indicators, chart patterns, and risk management strategies to confirm signals and optimize trade entries and exits.
Disclaimer: This indicator should be used as a tool for technical analysis and does not guarantee specific trading outcomes. Users should exercise their own discretion and risk management when making trading decisions based on this indicator.
I hope my Thange Momentum Kicks indicator enhances your trading experience and helps you identify strong bullish and bearish candles with ease. Happy trading!
Advanced Volatility-Adjusted Momentum IndexAdvanced Volatility-Adjusted Momentum Index (AVAMI)
The AVAMI is a powerful and versatile trading index which enhances the traditional momentum readings by introducing a volatility adjustment. This results in a more nuanced interpretation of market momentum, considering not only the rate of price changes but also the inherent volatility of the asset.
Settings and Parameters:
Momentum Length: This parameter sets the number of periods used to calculate the momentum, which is essentially the rate of change of the asset's price. A shorter length value means the momentum calculation will be more sensitive to recent price changes. Conversely, a longer length will yield a smoother and more stabilized momentum value, thereby reducing the impact of short-term price fluctuations.
Volatility Length: This parameter is responsible for determining the number of periods to be considered in the calculation of standard deviation of returns, which acts as the volatility measure. A shorter length will result in a more reactive volatility measure, while a longer length will produce a more stable, but less sensitive measure of volatility.
Smoothing Length: This parameter sets the number of periods used to apply a moving average smoothing to the AVAMI and its signal line. The purpose of this is to minimize the impact of volatile periods and to make the indicator's lines smoother and easier to interpret.
Lookback Period for Scaling: This is the number of periods used when rescaling the AVAMI values. The rescaling process is necessary to ensure that the AVAMI values remain within a consistent and interpretable range over time.
Overbought and Oversold Levels: These levels are thresholds at which the asset is considered overbought (potentially overvalued) or oversold (potentially undervalued), respectively. For instance, if the AVAMI exceeds the overbought level, traders may consider it as a possible selling opportunity, anticipating a price correction. Conversely, if the AVAMI falls below the oversold level, it could be seen as a buying opportunity, with the expectation of a price bounce.
Mid Level: This level represents the middle ground between the overbought and oversold levels. Crossing the mid-level line from below can be perceived as an increasing bullish momentum, and vice versa.
Show Divergences and Hidden Divergences: These checkboxes give traders the option to display regular and hidden divergences between the AVAMI and the asset's price. Divergences are crucial market structures that often signal potential price reversals.
Index Logic:
The AVAMI index begins with the calculation of a simple rate of change momentum indicator. This raw momentum is then adjusted by the standard deviation of log returns, which acts as a measure of market volatility. This adjustment process ensures that the resulting momentum index encapsulates not only the speed of price changes but also the market's volatility context.
The raw AVAMI is then smoothed using a moving average, and a signal line is generated as an exponential moving average (EMA) of this smoothed AVAMI. This signal line serves as a trigger for potential trading signals when crossed by the AVAMI.
The script also includes an algorithm to identify 'fractals', which are distinct price patterns that often act as potential market reversal points. These fractals are utilized to spot both regular and hidden divergences between the asset's price and the AVAMI.
Application and Strategy Concepts:
The AVAMI is a versatile tool that can be integrated into various trading strategies. Traders can utilize the overbought and oversold levels to identify potential reversal points. The AVAMI crossing the mid-level line can signify a change in market momentum. Additionally, the identification of regular and hidden divergences can serve as potential trading signals:
Regular Divergence: This happens when the asset's price records a new high/low, but the AVAMI fails to follow suit, suggesting a possible trend reversal. For instance, if the asset's price forms a higher high but the AVAMI forms a lower high, it's a regular bearish divergence, indicating potential price downturn.
Hidden Divergence: This is observed when the price forms a lower high/higher low, but the AVAMI forms a higher high/lower low, suggesting the continuation of the prevailing trend. For example, if the price forms a lower low during a downtrend, but the AVAMI forms a higher low, it's a hidden bullish divergence, signaling the potential continuation of the downtrend.
As with any trading tool, the AVAMI should not be used in isolation but in conjunction with other technical analysis tools and within the context of a well-defined trading plan.
RSI MTF [Market Yogi]The Multi-Time Frame RSI with Money Flow Index and Average is a powerful trading indicator designed to help traders identify overbought and oversold conditions across multiple time frames. It combines the Relative Strength Index (RSI) with the Money Flow Index (MFI) and provides an average value for better accuracy.
The Relative Strength Index (RSI) is a popular momentum oscillator that measures the speed and change of price movements. It oscillates between 0 and 100 and is used to identify overbought and oversold conditions in an asset. By incorporating the RSI across multiple time frames, this indicator offers a broader perspective on market sentiment.
In addition to the RSI, this indicator also includes the Money Flow Index (MFI). The MFI is a volume-based oscillator that measures the inflow and outflow of money into an asset. It takes into account both price and volume, providing insights into the strength and direction of buying and selling pressure.
By combining the RSI and MFI across multiple time frames, traders gain a comprehensive understanding of market dynamics. The indicator allows for comparing the RSI and MFI values across different time frames, enabling traders to identify divergences and potential trend reversals.
Furthermore, this indicator provides an average value of the multi-time frame RSI, offering a consolidated signal that helps filter out noise and enhance the accuracy of trading decisions.
Key Features:
1. Multi-Time Frame RSI: Combines the RSI across different time frames to provide a comprehensive view of market sentiment.
2. Money Flow Index (MFI): Incorporates the MFI to gauge buying and selling pressure based on both price and volume.
3. Average Calculation: Computes the average value of the multi-time frame RSI to generate a consolidated trading signal.
4. Divergence Detection: Enables traders to spot divergences between the RSI and MFI values, indicating potential trend reversals.
5. Overbought and Oversold Levels: Highlights overbought and oversold levels on the RSI, aiding in timing entry and exit points.
The Multi-Time Frame RSI with Money Flow Index and Average is a versatile tool that can be applied to various trading strategies, including trend following, swing trading, and mean reversion. Traders can adjust the time frame settings to suit their preferences and trading style.
Note: It's important to use this indicator in conjunction with other technical analysis tools and indicators to validate signals and make informed trading decisions.
Volume Accumulation Oscillator (VAO)The Volume Accumulation Oscillator (VAO) is a powerful momentum-based indicator designed to assess the strength of volume accumulation in a given asset. It helps traders identify periods of intense buying or selling pressure and potential trend reversals.
The VAO calculates the Net Volume Accumulation (NVA) by considering the volume, open, close, high, and low prices. It then applies exponential moving averages (EMAs) to smooth the NVA and calculates the VAO by comparing the smoothed NVA with its EMA over a specified signal period.
The VAO is plotted as a line chart, providing a clear visual representation of its values. Positive VAO values indicate strong bullish volume accumulation, suggesting potential upward price movement. Conversely, negative VAO values indicate significant selling pressure and the possibility of a downtrend.
To enhance the analysis, the indicator includes reference levels such as the zero line and +/-1 levels. These levels serve as important reference points for interpreting the VAO values and identifying key turning points in the market.
Additionally, the VAO histogram is included, which further illustrates the strength and direction of volume accumulation. The histogram bars are color-coded, with green bars representing positive VAO values and red bars representing negative VAO values.
The Volume Accumulation Oscillator is a versatile tool that can be used in various trading strategies. Traders can look for divergences between the VAO and the price chart to identify potential trend reversals. Combining the VAO with other technical analysis techniques can provide valuable insights into market dynamics and help traders make informed trading decisions.
Note: It is recommended to customize the indicator's parameters and conduct thorough backtesting to align it with your specific trading strategy and preferences before using it for live trading.
Disclaimer: This indicator is provided for educational and informational purposes only. Trading involves risks, and it is important to exercise caution and conduct your own analysis before making any investment decisions.
Composite MomentumComposite Momentum Indicator - Enhancing Trading Insights with RSI & Williams %R
The Composite Momentum Indicator is a powerful technical tool that combines the Relative Strength Index (RSI) and Williams %R indicators from TradingView. This unique composite indicator offers enhanced insights into market momentum and provides traders with a comprehensive perspective on price movements. By leveraging the strengths of both RSI and Williams %R, the Composite Momentum Indicator offers distinct advantages over a simple RSI calculation.
1. Comprehensive Momentum Analysis:
The Composite Momentum Indicator integrates the RSI and Williams %R indicators to provide a comprehensive analysis of market momentum. It takes into account both the strength of recent price gains and losses (RSI) and the relationship between the current closing price and the highest-high and lowest-low price range (Williams %R). By combining these two momentum indicators, traders gain a more holistic view of market conditions.
2. Increased Accuracy:
While the RSI is widely used for measuring overbought and oversold conditions, it can sometimes generate false signals in certain market environments. The Composite Momentum Indicator addresses this limitation by incorporating the Williams %R, which focuses on the price range and can offer more accurate signals in volatile market conditions. This combination enhances the accuracy of momentum analysis, allowing traders to make more informed trading decisions.
3. Improved Timing of Reversals:
One of the key advantages of the Composite Momentum Indicator is its ability to provide improved timing for trend reversals. By incorporating both RSI and Williams %R, traders can identify potential turning points more effectively. The Composite Momentum Indicator offers an early warning system for identifying overbought and oversold conditions and potential trend shifts, helping traders seize opportunities with better timing.
4. Enhanced Divergence Analysis:
Divergence analysis is a popular technique among traders, and the Composite Momentum Indicator strengthens this analysis further. By comparing the RSI and Williams %R within the composite calculation, traders can identify divergences between the two indicators more easily. Divergence between the RSI and Williams %R can signal potential trend reversals or the weakening of an existing trend, providing valuable insights for traders.
5. Customizable Moving Average:
The Composite Momentum Indicator also features a customizable moving average (MA), allowing traders to further fine-tune their analysis. By incorporating the MA, traders can smooth out the composite momentum line and identify longer-term trends. This additional layer of customization enhances the versatility of the indicator, catering to various trading styles and timeframes.
The Composite Momentum Indicator, developed using the popular TradingView indicators RSI and Williams %R, offers a powerful tool for comprehensive momentum analysis. By combining the strengths of both indicators, traders can gain deeper insights into market conditions, improve accuracy, enhance timing for reversals, and leverage divergence analysis. With the added customization of the moving average, the Composite Momentum Indicator provides traders with a versatile and effective tool to make more informed trading decisions.
Absolute Momentum IntensityNo lag, no boundaries, real momentum indicator.
Momentum = mass × velocity
In trading, this would be: volume × candle size. But due to the huge differences in volumes and volatility in the market, strong momentum crushes (flattens) average momentum, making it unpractical in an indicator. AMI provides a usable and adjustable workaround to this problem.
HOW DOES AMI WORK?
AMI measures and plots the momentum of each candle individually, with a formula I invented (or so I believe).
Formula: (Actual volume / Moving average of the volumes) × (Actual size of the candle / Moving average of the size of the candles)
Put simply, it multiplies the ratio between actual and past volumes, by the ratio between actual and past candles' sizes.
The length of the moving averages used in AMI's calculation is called "Contrast" in the settings.
A contrast of 20 shows every single impulse.
100 flattens small moves, thus revealing when the momentum is at its strongest.
Feel free to adjust the contrast of AMI to fit your needs.
The result is plotted starting from the last point. So the angle of each segment expresses the momentum of the corresponding candle.
Note: AMI will not run without enough candles or volume datas, on higher timeframes for example (W,M...).
HOW TO READ AMI?
AMI's line color, angle, and backgrounds help identify the current momentum as bullish, bearish, weak, or strong.
When AMI crosses the closest ribbon's line (which is in gray by default), its color changes, signaling a shift in momentum.
When the 3 ribbons are fully deployed, separated by large backgrounds, the momentum can be considered strong. This is what we are looking for.
When the momentum decreases, the background color changes (gray by default). It can be nothing, or it can be an early sign of consolitation or even reversal, especially if more do follow.
AMI adjusts to the size of its pane. Therefore, it is a good idea to keep a period of strong momentum in the screen, as a scale.
Comparing the actual momentum with the past ones sheds some light on the intensity of the price action.
DIVERGENCES
Divergences are relevant as long as there's amplitude in the chart. But it is still hard to estimate how far the expected move will go.
AMI comes with a divergence detection system. It won't show all the divergences though. Just the ones it can pick. So you might look for more, and adjust the settings to your needs.
This part of the script is independant from AMI, and easy to identify, so you can delete it if you don't need it.
DO NOT BASE YOUR TRADING DECISIONS ON 1 SINGLE INDICATOR'S SIGNALS.
Always confirm your ideas by other means, like price action and indicators of a different nature.
HT Momentum Indicator [ ZCrypto ]
The HT Momentum Indicator is a technical analysis tool that uses the Hyperbolic Tangent (tanh) function to measure momentum in a trading instrument.
This indicator is plotted as a histogram, with positive values indicating bullish momentum and negative values indicating bearish momentum.
Here are the main features and settings of the HT Momentum Indicator:
Source: This setting allows you to choose the price data used to calculate the momentum indicator. By default, the indicator uses the (High+Low+Close)/3 price, but you can select other options such as the open, high, or low prices.
Period: This setting determines the number of periods used in the momentum calculation. By default, the indicator uses a period of 14, but you can adjust this to suit your trading style and the market you are trading.
Show Fast/Slow/VWAP: These settings allow you to choose whether or not to display the fast and slow exponential moving averages (EMAs) and the volume-weighted average price (VWAP) on the chart.
Fast Length/Slow Length/VWAP Length: These settings allow you to adjust the length of the fast and slow EMAs and the VWAP calculation.
Bull Color/Bear Color: These settings allow you to choose the colors for the bullish and bearish histograms.
Zero Line: This indicator also includes a horizontal line at the zero level to help you identify when momentum is transitioning from bullish to bearish or vice versa.
The HT Momentum Indicator can be used to identify trends, momentum shifts, and potential buy/sell signals.
you can use the fast and slow EMAs to identify short-term and long-term trends, respectively, and the VWAP to gauge the strength of buying or selling pressure.
Additionally, the HT Momentum Indicator includes four pre-programmed alert conditions, which can notify you
when the fast EMA crosses above the slow EMA,
when the VWAP crosses above the zero line,
when the histogram transitions from negative to positive values.
when the histogram transitions from negative to positive values and VWAP above zero line
"The Stocashi" - Stochastic RSI + Heikin-AshiWhat up guys and welcome to the coffee shop. I have a special little tool for you today to throw in your toolbox. This one is a freebie.
This is the Stochastic RS-Heiken-Ashi "The Stocashi"
This is the stochastic RSI built to look like Heikin-Ashi candles.
a lot of people have trouble using the stochastic indicator because of its ability to look very choppy at its edges instead of having nice curves or arcs to its form when you use it on scalping time frames it ends up being very pointed and you can't really tell when the bands turn over if you're using a stochastic Ribbon or you can't tell when it's actually moving in a particular direction if you're just using the K and the D line.
This new format of Presentation seeks to get you to have a better visual representation of what the stochastic is actually doing.
It's long been noted that Heikin-Ashi do a very good job of representing momentum in a price so using it on something that is erratic as the stochastic indicator seems like a plausible idea.
The strategy is simple because you use it exactly the same way you've always used the stochastic indicator except now you can look for the full color of the candle.
this one uses a gradient color setup for the candle so when the candle is fully red then you have a confirmed downtrend and when the candle is fully green you have a confirmed up trend of the stochastic however if, you a combination of the two colors inside of one candle then you do not have a confirmed direction of the stochastic.
the strategy is simple for the stochastic and that you need to know your overall trend. if you are in an uptrend you are waiting for the stochastic to reach bottom and start curving up.
if you are in a downtrend you are waiting for the stochastic to reach its top or its peak and curve down.
In an uptrend you want to make sure that the stochastic is making consistently higher lows just like price should be. if at any moment it makes a lower low then you know you have a problem with your Trend and you should consider exiting.
The opposite is true for a downtrend. In a downtrend you want to make sure you have lower highs. if at any given moment you end up with a higher high than you know you have a problem with your Trend and it's probably ending so you should consider exiting.
The stochastic indicator done as he can actually candles also does a very good job of telling you when there is a change of character. In that moment when the change of character shows up you simply wait until your trend and your price start to match up.
You can also use the stochastic indicator in this format to find divergences the same way you would on the relative strength index against your price highs and price lows so Divergence trading is visually a little bit easier with this tool.
The settings for the K percent D percent RSI length and stochastic length can be adjusted at will so be sure to study the history of the stochastic and find the good settings for your trading strategy.
Open DriveOpen Drive is a market profile concept introduced by Jim Dalton. It occurs when the price moves directionally and persistently for the first 30 minutes from the cash market open.
It is necessary to use 30-minute bars as there needs to be enough time to measure an extreme move of the cash open. This means there will be fewer trades than other strategies using faster time periodicities.
The script finds open drives from these time points 0700/ 0800 and 1300/1430.
The entry signal also has a breakout threshold using the 5-bar high and 5-bar low to only take trades moving away from the prior 5-bar range. This weeds out most mid-range trades and small range expansion bars.
If the price has had a strong move from the open and has broken either below the prior 5-bar low or above the prior 5-bar high by an amount equal to the prior 5-bar range a trade is entered in the direction of the move.
The Exit criteria; exit after 3 bars which is 90mins when using a 30min periodicity.
Note, this script is shared to show that momentum generated on or around the cash open tends to persist. The entry and exits of this strategy are quite naive but there are plenty of ways to take more aggressive entries on faster time frames when an open drive occurs. The times chosen for this strategy will suit stock index futures mainly. The user can experiment with other futures products and their corresponding pit/ cash open hours.
Google "open drive market profile" for more information on open drives and market profile concepts.
Happy trading!
SuperTrend Momentum TableMy goal creating this indicator : Provide a way to see the Past and Current Momentum of multiple different timeframes without using multiple charts.
The Underlying Concept / What is Momentum?
The Momentum shown is derived from a Mathematical Formula, SUPERTREND. When price closes above Supertrend Its bullish Momentum when its below Supertrend its Bearish Momentum.This indicator scans for bullish & bearish Momentum on the Timeframes selected by the user and when there is a shift in momentum on any of those time frames (price closes below or above SUPERTREND ) it notifies the trader with a color change on the Momentum Table.
Back Testing: This indicator will be key for back testing with the SuperTrend-Support-Resistance indicator
since the SuperTrend Momentum Table shows you the visual shift in momentum. Giving the Trader a Clear visual on how Each Support and Resistance Level was made .
Technical Inputs
- If you want to optimize the rate of signals to better fit your trading plan you would change the Factor input and ATR Length input. Increase factor and ATR Length to decrease the frequency of signals and decrease the Factor and ATR Length to increase the frequency of signals.
Quick TIP! : You can Sync all VFX SuperTrend Indicators together! All VFX SuperTrend indicators display unique information but its all derived from that same Momentum Formula. Keep the Factor input and ATR Length the same on other VFX SuperTrend indicators to have them operating on the same data.
Timeframe Inputs
- The indicator has 7 Time frame Displays where you can choose which Time Frames you would like to monitor.
- You can limit the amount of time frames being displayed by changing the Time Frame Amount
Display Inputs
- The trader can specify the bullish and bearish color of all 7 Timeframes
- You can toggle (on or off) the Momentum Switch if you want to highlight the exact candle where momentum switched from bullish to bearish and from bearish to bullish .
How it can be Used ? Check the momentum of other Timeframes and use that information as a variable to structure your trading plan.
- Use Momentum information to track the trend
- Plan and limit trades based on the current Momentum of multiple timeframes
- See if you have higher momentum to fuel your trades
- See breakouts on Multiple Time Frames
SuperTrend Momentum Chart(My goal creating this indicator) : Provide a quick way to check the current momentum of multiple timeframes. The Smart Momentum Chart was intended to be a live trading tool that should be used when a trader has already defined his edge and no longer needs the past Momentum data.
The Underlying Concept
What is Momentum ?
The Momentum shown is derived from a Mathematical Formula SUPERTREND , when price is above SUPERTREND its bullish Momentum and when its below SUPERTREND its Bearish Momentum. This indicator scans for candle closes on the timeframes you've selected and when there is a shift in momentum it notifies the trader with a color change and an alert if one was set up.
Technical inputs
- If you want to optimize the rate of signals to better fit your trading plan you would change the Factor input and ATR Length input. Increase factor and ATR Length to decrease the frequency of signals and decrease the Factor and ATR Length to increase the frequency of signals.
Quick TIP! : You can Sync all VFX SuperTrend Indicators together! All VFX SuperTrend indicators display unique information but its all derived from that same Momentum Formula. Keep the Factor input and ATR Length the same on other VFX SuperTrend indicators to have them operating on the same data.
Time Frame Inputs
- Your able to fill the chart with up to 8 timeframes
- If You don't need all 8 you can limit the amount to display by changing the "Time Frame Amount"
Display Inputs
- You can change the size of the chart and the color of the text
- You can toggle ON if you want to be signaled when a momentum switch occurs ( bullish to bearish or bearish to bullish )
- Your able to pick the Bullish and Bearish Colors of the Momentum switch
How it can be used ?
- Easily check the momentum of other Timeframes and use that information as a variable in your trading plan.
- quickly glance and know the momentum of any time frame before you enter any trade
- always know the momentum of the higher time frames
- Eliminate the need to switch from current chart
- Get an abundance of information in one location
- Have clear variables to structure your trades around
Delta-RSI Oscillator StrategyDelta-RSI Oscillator Strategy:
This strategy illustrates the use of the recently published Delta-RSI Oscillator as a stand-alone indicator.
Delta-RSI represents a smoothed time derivative of the RSI, plotted as a histogram and serving as a momentum indicator.
There are three optional conditions to generate trading signals (set separately for Buy, Sell and Exit signals):
Zero-crossing : bullish when D-RSI crosses zero from negative to positive values (bearish otherwise)
Signal Line Crossing : bullish when D-RSI crosses from below to above the signal line (bearish otherwise)
Direction Change : bullish when D-RSI was negative and starts ascending (bearish otherwise)
Since D-RSI oscillator is based on polynomial fitting of the RSI curve, there is also an option to filter trade signal by means of the root mean-square error of the fit (normalized by the sample average).
My original D-RSI Oscillator script can be found here:
RSI + DivergencesHi Guys,
This indicator gives you the trend changes (Designed with the basics of Vash's RSI advanced and the Fikira divergence indicator)
This indicator will only give you regular divergences.
Please keep in mind that a trading plan is not only built with momentum but also with location and structure.
Good trading,
Trend MeterUse as a supplementary Indicator to confirm your entries, but it is as good on it's own.
When you first apply the indicator to your chart make sure you shrink it down It looks a lot better that way
The indicator consists of 3 different Trend Meters and a Trend Bar which are used to confirm trend
As a bonus Possible Momentum Setup entries based on Stochastics are marked as well, these are very Powerful however please use with caution
How to Use
The more Trend meters are lit up the better
Look for Support or Resistance Levels for price to be attracted to
Find confluence with other indicators
Enter Long above the Setup Bar
Enter Short Below the Setup Bar
Double Stochastic DivergenceSame as my protected script but you can now see the code
This Study plots divergences and overlays a second %K as a fractal and changes the color of %D for the non fractal
Option to use Stochastic RSI for Fractal
Background Shading according to trend
Feel Free to change the indicator values to suit your style / system
The divergence script is thanks to @RicardoSantos, I've just adjusted it to suite my indicator
Remember that divergences work best when traded with the trend or very late in a trend when going against the trend
Common value for %K is 5, I have chosen 3 as it gives faster entries when using multiple time frames
If you are not using a momentum indicator as a trailing stop and using only cycle indicator
then I would recommended %K be 4 for exits
