Momentum Index [BigBeluga]

5. Sept.

The Momentum Index is an innovative indicator designed to measure the momentum of price action by analyzing the distribution of positive and negative momentum values over a defined period. By incorporating delta-based calculations and smoothing techniques, it provides traders with a clear and actionable representation of market momentum dynamics.


🔵 Key Features:

Delta-Based Momentum Analysis:

• Calculates the momentum of price by comparing its current state to its value from a defined number of bars back.
  
• Inside a loop, it evaluates whether momentum values are above or below zero, producing a delta value that reflects the net momentum direction and intensity.
  Double EMA Smoothing:
• Smooths the raw delta-based momentum values with a double EMA filter, reducing noise and providing a clearer trend signal.
  
  

  tmi(len) =>
          sum = 0.0
      sum1 = 0.0
  
      above = 0.0
      below = 0.0
  
      src_ = src - src[len]
  
          for i = 0 to len
          sum := sum + (src_ > nz(src_) ? 1 : -1)
          sum1 := sum1 + (sum > 0 ? 1 : -1)
  
      sum1 := emaEma(sum1, 10)
  
      for i = 1 to len
          above := above + (sum1 > 0 ? 1 : 0)
          below := below + (sum1 > 0 ? 0 : 1)
  
      [sum1, above, below]

Directional Momentum Signals:

• Generates momentum shift signals and displays them on both the oscillator and the main chart:
  - △ Aqua Triangles: Represent upward momentum shifts.
  - ▽ Red Triangles: Represent downward momentum shifts.
  

Dynamic Gradient Display:

• Highlights momentum zones with gradient fills:
  - Aqua shades for positive momentum (above zero).
  - Red shades for negative momentum (below zero).
  

Dashboard Display:

• A dashboard summarizing the count of momentum values above and below zero for the defined period (Sentiment Length e.g. 100), helping traders assess market sentiment at a glance.
  

🔵 How It Works:

• The indicator takes price momentum as its source and evaluates the number of momentum values above and below zero within a defined period.
  
• The delta calculation aggregates this information, providing a net representation of the prevailing market momentum.
  
• A double EMA filter is applied to the delta values, smoothing the momentum line and enhancing signal clarity.
  
• Momentum shifts are highlighted with visual signals on the oscillator and price chart, while the gradient display provides a visual representation of intensity.
  

🔵 Use Cases:

• Momentum Tracking: Identify whether market momentum is predominantly bullish or bearish.
  
• Signal Confirmation: Use chart-based signals to confirm potential trend reversals or continuation.
  
• Analyze Market Strength: Leverage the dashboard to quickly assess the distribution of momentum over the chosen period.
  
• Overbought/Oversold Conditions: Utilize gradient zones to detect areas of momentum extremes and possible price exhaustion.
  

Momentum Index [BigBeluga] offers a refined approach to analyzing momentum dynamics, combining delta-based calculations with smoothing techniques and intuitive visuals, making it an essential tool for traders looking to anticipate market movements effectively.

5. Sept.

Versionshinweise

- Dashboard bars value