Momentum - MOM

🎯 Overview
This is an advanced Momentum - MOM indicator that measures absolute price change over time, combined with dynamic moving average filtering. Unlike basic MOM implementations, this version features gradient momentum zones, multiple color themes, and a clear signal dashboard for precise price momentum identification.

🧩 Core Components
1. ⚙️ Technical Foundation
📊 Primary Calculation: Uses TradingView's built-in ta.mom() function which calculates absolute price difference between current price and price N periods ago

📈 Dual Analysis Components:

MOM Line: Absolute price change oscillator (unbounded range based on price)

MA Filter: Customizable moving average acting as momentum baseline

Momentum Zones: Gradient fills for strong positive and negative momentum extremes

⚡ Absolute Change Measurement: Unique ability to quantify the actual price movement in points/currency units

2. 🎛️ Configuration Parameters
📏 MOM Length: Default 14 periods (standard momentum setting)

🔄 MA Filter Settings:

Length: Customizable (default 365 periods)

Type: 6 options available (EMA, SMA, RMA, WMA, VWMA, HMA)

🎨 Color Themes: 5 visual schemes consistent with your indicator suite:

Classic, Modern, Robust, Accented, Monochrome

📊 Signal Interpretation:

🟢 BULLISH: MOM > MA Filter (price momentum above baseline)

🔴 BEARISH: MOM < MA Filter (price momentum below baseline)

🚀 STRONG BULLISH: (extreme positive momentum)

📉 STRONG BEARISH: (extreme negative momentum)

3. 🎨 Visual Elements
🚨 Gradient Zones:

Strong Bullish zone : Green gradient intensifying toward higher values

Strong Bearish zone : Red gradient intensifying toward lower values

📋 Dashboard Display: Top-right status indicator showing "⬆️ Bullish" or "⬇️ Bearish"

📊 Dynamic Coloring: MOM line changes color based on position relative to MA

⚡ Midline Reference: Subtle 50-level reference line for scale orientation

⚡ Trading Applications
📈 Primary Uses:
🎯 Absolute Momentum Measurement:

MOM > MA = Bullish price momentum

MOM < MA = Bearish price momentum

MOM = 0 = No net price change over period

💪 Momentum Strength in Price Terms:

Shows actual points/currency gained or lost

Useful for position sizing and risk management

More intuitive than percentages for some traders

🚨 Extreme Momentum Signals:

Extreme Bullish: (major price appreciation)

Extreme Bearish: (major price depreciation)

📊 Zone Analysis:
🟢 Strong Bullish Zone :

Green gradient fills

Indicates substantial price gains over the period

Often signals strong trend continuation or potential exhaustion

🔴 Strong Bearish Zone :

Red gradient fills

Indicates substantial price losses over the period

Often signals strong downtrend or potential reversal

🟡 Equilibrium: Yellow MA line acts as momentum baseline filter

🎨 Customization Options
👁️ Display Features:
📊 Dual Components: Always shows both MOM line and MA filter
🎨 Gradient Visualization: Automatic fill for extreme momentum conditions
📋 Status Dashboard: Clear bullish/bearish momentum indication
📈 Customizable MA: Choose from 6 different moving average types
📏 Wide Dynamic Range: ±15,000 levels accommodate various asset price ranges

🎨 Visual Themes: (Consistent suite)
🎨 Classic: Green/Red (traditional momentum colors)

🚀 Modern: Cyan/Purple (contemporary)

💪 Robust: Amber/Deep Purple (high contrast)

🌈 Accented: Purple/Magenta (vibrant)

⚫⚪ Monochrome: Light Gray/Dark Gray (minimalist)

🔔 Alert System
🟢 LONG Alert: Triggers when MOM crosses above MA
🔴 SHORT Alert: Triggers when MOM crosses below MA
📧 Format: Includes ticker symbol for tracking

⚡ Key Advantages
✅ Strengths:
🎯 Price-Based Analysis: Measures actual price movement in understandable units
💪 Absolute Value Interpretation: Shows exact points gained/lost over period
👁️ Clear Trend Momentum: MA filter separates noise from meaningful momentum
🔄 Flexible Across Assets: Works equally well with stocks, crypto, forex, etc.
📊 Professional Dashboard: Immediate momentum status recognition

📊 Optimal Settings:
⚡ Short-term Trading: MOM Length 10-14, MA Length 20-50
📊 Medium-term Trading: MOM Length 14-20, MA Length 50-100
📈 Long-term Trading: MOM Length 20-30, MA Length 100-365

🏆 Unique Features:
🎯 Absolute Price Measurement: Shows exact price change, not percentages
📊 Extreme Thresholds: ±15,000 levels for major momentum identification
🎨 Consistent Design: Matches your indicator family aesthetics
📋 Momentum Dashboard: Quick visual confirmation of price momentum
🔧 Direct Price Analysis: No conversion needed - shows actual market movement

🔄 Trading Strategies
1. Price Momentum Strategy:
Go LONG when MOM crosses above MA with positive values

Go SHORT when MOM crosses below MA with negative values

Strong signals when MA crossover aligns with extreme zones

2. Momentum Divergence:
Price makes higher high, MOM makes lower high → Bearish divergence (momentum weakening)

Price makes lower low, MOM makes higher low → Bullish divergence (selling pressure decreasing)

3. Trend Strength Assessment:
Large positive MOM values = Strong uptrend momentum

Large negative MOM values = Strong downtrend momentum

MOM near zero = Consolidation or trend change

📈 Performance Tips
Asset-Specific Thresholds: Adjust ±15,000 levels based on typical price ranges

Zero Line Significance: MOM crossing zero often precedes trend changes

Extreme Readings: Very high/low MOM values may indicate exhaustion moves

Multiple Timeframes: Compare MOM values across timeframes for confirmation

Combine with Volume: Add volume analysis to confirm momentum moves

This enhanced Momentum indicator provides professional-grade price-based momentum analysis with intuitive visualization, allowing traders to measure exact price movements, identify momentum trends in absolute terms, and filter signals through the customizable moving average for precise momentum-based trading decisions! 📊📈