Momentum Pro

With momentum trading, a trader needs to locate an entry opportunity in a short-term trend and exit when the trend is likely to lose its momentum. After taking the profit, the trader seeks the next short-term trend to repeat the process. This is a trading strategy that requires strict discipline for entries & exits (as well as money management).

Our Momentum Pro indicator supports momentum traders by recognizing potential trend starts & ends based on momentum analysis. We added an upper bound and a lower bound above & below the momentum plot to help identify meaningful changes in momentum, and therefore potential trends. Here is the logic, very simple:

• When the lower bound crosses above zero, an uptrend starts. The uptrend will remain until the momentum plot falls below zero.
• When the upper bound crosses below zero, a downtrend starts. The downtrend will remain until the momentum plot rises above zero.

• Plot momentum, upper bounder, lower bound
• Allow smoothing momentum (with
  11 popular moving averages
  )
• Allow choosing the offset type: StdDev, ninZaATR, Tick
• Allow configuring the offset multiplier to decide how far the bounds are from momentum plot
• Paint bars to show 3 phases: uptrend, downtrend, neutral
• Paint background to show 3 phases: uptrend, downtrend, neutral
• Colorize momentum plot to show 3 phases: uptrend, downtrend, neutral
• Print markers on trend start
• Trigger alerts on trend start
• Be NinjaScript ready for advanced usage, only restricted by your imagination
• Expose dedicated NinjaScript signals

• Signal_Trend: 1 = uptrend, -1 = downtrend, 0 = neutral