OPEN-SOURCE SCRIPT
Momentum Trader
This study combines two versatile momentum indicators :
Chande Momentum Oscillator:
-Measures trend strength, with higher absolute values meaning greater strength.
-Also tracks divergence. When price increases, but is not accompanied by an increase in Chande Momentum Oscillator values, it signifies bearish divergence and a reversal is likely to follow.
-Shown as the teal and pink histogram.
Percentage Price Oscillator:
-Similar to the MACD, except that it expresses the difference between the two moving averages in terms of a percentage. This makes it a little easier to visualize.
-PPO values greater than zero indicate an uptrend, as that means the fast EMA is greater than the slow (and vice versa).
Entry and Exit Conditions:
Enter When:
1) Chande Momentum crosses over zero from negative to positive territory. AND
2) It has been less than 3 bars since Chande Momentum was less than the lower green line. AND
3) Chande Momentum is rising(positive slope).
Exit When:
1) Chande Momentum is greater than the upper line. AND
2) It has been less than 6 bars since the PPO value was greater than the upper bound. AND
3) PPO is less than 5 (meaning the difference between the two EMA's is less than 5%). AND
4)PPO has a negative slope.
This study comes with alert conditions for long entries and exits.
~Happy Trading~
Chande Momentum Oscillator:
-Measures trend strength, with higher absolute values meaning greater strength.
-Also tracks divergence. When price increases, but is not accompanied by an increase in Chande Momentum Oscillator values, it signifies bearish divergence and a reversal is likely to follow.
-Shown as the teal and pink histogram.
Percentage Price Oscillator:
-Similar to the MACD, except that it expresses the difference between the two moving averages in terms of a percentage. This makes it a little easier to visualize.
-PPO values greater than zero indicate an uptrend, as that means the fast EMA is greater than the slow (and vice versa).
Entry and Exit Conditions:
Enter When:
1) Chande Momentum crosses over zero from negative to positive territory. AND
2) It has been less than 3 bars since Chande Momentum was less than the lower green line. AND
3) Chande Momentum is rising(positive slope).
Exit When:
1) Chande Momentum is greater than the upper line. AND
2) It has been less than 6 bars since the PPO value was greater than the upper bound. AND
3) PPO is less than 5 (meaning the difference between the two EMA's is less than 5%). AND
4)PPO has a negative slope.
This study comes with alert conditions for long entries and exits.
~Happy Trading~
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
-Profit Programmers
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