SPX-40 % PMO Above Zero [bluesky]█ OVERVIEW
The "SPX-40 % PMO Above Zero" script analyzes market breadth based on the percentage of stocks within the SPX-40 subset with a Positive Momentum Oscillator (PMO) value greater than or equal to zero. It provides insights into the strength and breadth of positive momentum signals, aiding traders in making informed decisions.
█ CONCEPTS
This script evaluates the percentage of stocks within the SPX-40 subset that have a PMO value above zero. By calculating this percentage, the script identifies periods of broad positive momentum and potential trading opportunities.
█ CALCULATION
The script calculates the percentage of stocks with a PMO value above zero within the SPX-40 subset. It uses the PMO values of individual stocks to assess market breadth and determine the strength of positive momentum signals.
█ HOW TO USE IT
- Timeframe: Optimize the script for different timeframes to analyze market breadth effectively.
- Market Breadth Analysis: The script displays the percentage of SPX-40 stocks with a PMO value above zero, indicating the strength of positive momentum signals across the subset.
- Trend Identification: Monitor changes in the percentage of stocks above zero to identify shifts in market breadth and trends.
- Risk Management: Consider the breadth of positive momentum signals when setting stop-loss levels or evaluating overall market conditions.
█ ADDITIONAL OPTIONS
- This script offers additional options to enhance analysis and customization, including the usage of two exponential moving averages (fast and slow) for additional insights into momentum trends.
- Background colors for EMA crossovers can be visualized using customizable options, aiding in trend identification.
- The Heikin Ashi candles option can be enabled for a different perspective on price movements.
█ FLEXIBILITY AND ADAPTABILITY
It's important to note that the default selection of 40 stocks within the SPX-40 subset may need adjustment over time as market dynamics change. Traders have the flexibility to modify the list of stocks to reflect the current market conditions and ensure the script's relevance and accuracy. Please review and update the list periodically to maintain the effectiveness of the analysis.
█ DISCLAIMER
Trading involves risks, and past performance is not indicative of future results. The "SPX-40 % PMO Above Zero" script is a tool designed to assist traders in analyzing market breadth and positive momentum signals. It should be used in conjunction with sound risk management practices and a comprehensive trading strategy. Traders are encouraged to perform their due diligence, exercise caution, and adapt the script to their individual trading preferences and requirements.
Please note that this script does not make any claims of guaranteed profitability or provide investment advice. Always consult with a qualified financial professional before making any investment decisions.
Subsectors
SPX-Sectors % PMO Above Zero [bluesky]█ OVERVIEW
The "Subsector-11 % PMO Above Zero" script analyzes market breadth based on the percentage of 11 user-adjustable subsector ETFs of the S&P 500 with a Positive Momentum Oscillator (PMO) value greater than or equal to zero. It provides insights into the strength and breadth of positive momentum signals within specific subsectors, aiding traders in making informed decisions.
█ CONCEPTS
This script utilizes the PMO values of the 11 user-adjustable subsector ETFs of the S&P 500 to assess market breadth. By calculating the percentage of subsector ETFs with a PMO value above zero, it identifies periods of broad positive momentum and potential trading opportunities within those specific sectors.
█ PMO (Positive Momentum Oscillator)
Developed by Carl Swenlin, the PMO is an oscillator based on a Rate of Change (ROC) calculation that is smoothed twice with exponential moving averages using a custom smoothing process. The PMO is normalized, allowing it to be used as a relative strength tool. Traders can rank subsector ETFs based on their PMO values as an expression of relative strength.
█ CALCULATION
The script calculates the percentage of subsector ETFs with a PMO value above zero based on the provided PMO values of the 11 user-adjustable subsector ETFs. It uses custom smoothing functions similar to Exponential Moving Averages (EMAs) to derive the PMO values.
█ HOW TO USE IT
- Timeframe: Optimize the script for different timeframes to analyze market breadth effectively within specific subsectors.
- Subsector Analysis: The script displays the percentage of subsector ETFs within the 11 user-adjustable subsectors of the S&P 500 with a PMO value above zero, indicating the strength of positive momentum signals within those subsectors.
- Trend Identification: Monitor changes in the percentage of subsector ETFs above zero to identify shifts in market breadth and trends.
- Risk Management: Consider the breadth of positive momentum signals within specific subsectors when setting stop-loss levels or evaluating overall market conditions.
█ ADDITIONAL OPTIONS
This script offers additional options to enhance analysis and customization:
- Candle Style: Choose from different candle styles such as Heikin Ashi, Three Line Break, Candles, or Line for chart visualization.
- PMO Settings: Adjust the lengths of the PMO calculation and signal length according to your trading preferences.
- Moving Average Settings: Incorporate the usage of fast and slow exponential moving averages (EMAs) for additional insights into momentum trends.
█ FLEXIBILITY AND ADAPTABILITY
The script allows traders to adjust the subsector ETF names according to their specific requirements. Please review and update the list of subsector ETFs periodically to reflect the desired sectors for analysis and ensure the script's relevance and accuracy.
█ DISCLAIMER
Trading involves risks, and past performance is not indicative of future results. The "Subsector-11 % PMO Above Zero" script is a tool designed to assist traders in analyzing market breadth and positive momentum signals within specific subsectors. It should be used in conjunction with sound risk management practices and a comprehensive trading strategy. Traders are encouraged to perform their due diligence, exercise caution, and adapt the script to their individual trading preferences and requirements.
Please note that this script does not make any claims of guaranteed profitability or provide investment advice. Always consult with a qualified financial professional before making any investment decisions.
SPY Sub-Sector Daily Money Flow TableThis calculates the dollar volume per candlestick (2nd row) and cumulative (3rd row) of the entire trading day for each subsector of the SPY.
The 'Total' column is the total of all the subsectors combined. It is calculated separately from SPY volume.
The money flow is calculated with (open+close)/2 which means different timeframes yield different results and won't be especially accurate day-by-day. This is useful to quickly see rotation and possible divergences.
Enjoy!
