Momentum Shift + Exhaustion [VBS]

VictoryByStrategy – Momentum Shift is designed to help traders understand when momentum is changing, not just where price is moving.

Instead of focusing on entries alone, this indicator highlights early momentum shifts, confirmed momentum alignment, and momentum exhaustion, allowing traders to time entries more precisely and avoid low-quality trades.

This script is built to work as a timing companion to trend or bias indicators, especially higher-timeframe trend filters.

Core Logic

1. Momentum Shift (SHIFT)
Momentum shifts are detected using the MACD histogram, interpreted in two ways:

Early Shift
Detects when momentum starts changing direction (histogram slope reversal), often before price fully reacts.

Confirmed Shift
Detects when momentum is fully aligned (histogram crossing the zero line), providing a more conservative signal.

Users can choose to display Early, Confirmed, or both types depending on their trading style.

2. Momentum Exhaustion (EXH)
Exhaustion signals appear when momentum remains in one direction but begins to lose strength.

These signals are not entry signals by default.
They are intended to:
Warn against chasing extended moves
Anticipate pullbacks or pauses
Improve trade management and timing
Smart Filters (Optional)
Higher Timeframe Bias Filter (MTF)
Momentum signals can be filtered to align only with the higher-timeframe trend (default: 4H).
Volume Confirmation
Signals can optionally require above-average volume to reduce low-participation moves.

Cooldown Logic
Prevents signal clustering and keeps the chart clean and readable.
Clean, Professional Interface
Overlay design (no extra pane required)
Minimal and consistent signal markers:

SHIFT → momentum direction change

EXH → momentum weakening

Optional background coloring to reflect momentum regime
Compact on-chart status panel showing:
Current momentum state
HTF bias filter status
Signal mode and legend

How to Use (Simple Workflow)

Use a trend or bias indicator to define market direction
Wait for SHIFT signals to time entries in that direction
Use EXH signals as a warning to avoid late entries or manage positions

This indicator does not predict price.
It helps traders read momentum behavior in a structured and repeatable way.

Notes

Works on all markets and timeframes
Best used as part of a broader trading plan
No repainting of higher-timeframe bias logic

— VictoryByStrategy