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
Sürüm Notları
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Updated the BUY and SELL signals. Now they show only on the close of bars when they are confirmed. Added alerts for BUY and SELL signals.
I must confess, this is wizardry. Hopefully it will remain as free version. Thanks for making it free for us.
AstrideUnicorn
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@akintades333, Thank you for such a nice comment! Indeed, Momentum 2.0 combines its two main functions very well. The dynamic baseline makes it fast and the smoothing reduces the number of false signals. Traders love this indicator. And it will always stay free and open-source.
And we've managed to developed the ideas we first implemented in this indicator even further. In our MultiOs premium oscillator, we were able to make the signals faster (which in some cases allows for a drastically better entry point) and make the number of false signals even smaller.
akintades333
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@AstrideUnicorn, Wow! It's a great improvement that you guys have done. How do test it though?
@AstrideUnicorn, For some reasons not known to me, I couldn't reply your PM. I'm ready to use it anytime. You just let me know when you give me access. Thanks.
AstrideUnicorn
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@akintades333, Done! You can add it to your chart now.