Momentum 20

Author

ChaoZhang

Complexity

Starter · 36 lines

Parameters

Backtest bar

30m · intraday

Tested on

BTC/USDT · futures

Momentum 2.0 is a normalized Momentum oscillator with a moving base-level. The oscillator value is normalized by its standard deviation, similar to the z-score technique. Instead of the zero level, the indicator uses the base-level calculated as the inverted long-term average value of the oscillator. Similar to the zero-level crossing signal used for the Momentum oscillator, our oscillator calculates the base level crossing signal. The moving base-level helps to reduce the number of false signals. In an uptrend the base-level is below zero, in a downtrend it is above it. This allows us to take into account the trend stability effect. In this case, to form a reversal signal, the oscillator must cross a lower value in an uptrend and a higher value in a downtrend.

HOW TO USE When the oscillator crosses above the base-level, it gives a bullish signal, when below it gives a bearish signal. The signals are displayed as green and red labels, respectively. The color of the histogram shows the current direction of the price momentum. Green indicates an upward move and red indicates a downward move. The blue line represents the base-level.

SETTINGS Oscillator Period - determines the period of the Momentum oscillator Base Level Period - determines the period used for long-term averaging when calculating the base-level and normalizing the oscillator

backtest

Name	Default	What it controls
v_input_1	15	Oscillator Period
v_input_int_1	450	Base Level Period

Name

Default

What it controls

v_input_1

Oscillator Period

v_input_int_1

450

Base Level Period

/*backtest start: 2022-04-09 00:00:00 end: 2022-05-08 23:59:00 period: 30m basePeriod: 15m exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}] */ // This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/ // © AstrideUnicorn //@version=5 indicator("Momentum 2.0", overlay = false) source = close // Script Inputs window = input(defval=15, title="Oscillator Period") base_level_window = input.int(defval=450, title="Base Level Period", minval=300) // Calculate normalized and smoothed momentum oscillator momentum = ta.mom(source, window) momentum_normalized = ( momentum ) / ta.stdev(momentum, base_level_window) momentum_smoothed = ta.linreg(momentum_normalized, 30,0) // Calculated the base-level momentum_base = -ta.ema(momentum_normalized,base_level_window) // Calculate base-level cross signals bullish = ta.crossover(momentum_smoothed, momentum_base) bearish = ta.crossunder(momentum_smoothed, momentum_base) if bullish strategy.entry("Enter Long", strategy.long) else if bearish strategy.entry("Enter Short", strategy.short)

Momentum 20

Parameters

Source Pine Script

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