Momentum Indicators Suite

vor 21 Stunden

This script is a Momentum Indicators Suite for traders using Pine Script™ (version 5). Its purpose is to evaluate market conditions by aggregating signals from multiple technical indicators into a single "bullish," "bearish," or "neutral" state. Below is a detailed breakdown of its components and functionality:

1. Indicators Used
The script incorporates several well-known technical indicators to assess market momentum:

RSI (Relative Strength Index)
MACD (Moving Average Convergence Divergence)
Stochastic Oscillator
TSI (True Strength Index)
CCI (Commodity Channel Index)
Choppiness Index
Vortex Indicator
Momentum and ROC (Rate of Change)

2. Scoring System
Each indicator assigns points based on its signals:

+1 Point for bullish conditions.
-1 Point for bearish conditions.
0 Points for neutral or indecisive signals.
These points are aggregated to calculate a total score (totalPoints), representing overall market momentum.

3. Market State Determination
The total points determine the market state:
Bullish if totalPoints > 0.
Bearish if totalPoints < 0.

4. Dynamic Trend Label
When the market state changes, a label is added to the chart:
Green label for bullish trends.
Red label for bearish trends.

5. Visual Enhancements - Plot and Fill (Optional)

6. Customization - Traders can adjust several inputs for fine-tuning:

7. Target Audience - This script is ideal for:

Traders who rely on momentum and trend analysis for decision-making.
Those seeking a consolidated view of multiple indicators.
Swing and day traders aiming to identify trend changes promptly.

8. Potential Use Cases

Trend Confirmation: Helps confirm bullish or bearish market trends.
Trade Setup Identification: Assists in aligning trades with dominant market momentum.
Risk Management: Signals market neutrality or choppiness to avoid indecisive conditions.
This script simplifies complex momentum analysis by aggregating multiple indicators into actionable insights, making it a valuable tool for technical traders.