// is regarded as a . 2:1 momentum is associated with values of 66.67 and 33.33 respectfully. In an Uptrend an value of 40 should not be broken and in a downtrend
// a value of 60 should not be exceeded. 4:1 momentum ( values of 80/20) can be associated with extreme market conditions, typically thought of as being Overbought or Oversold.
// Simple divergence provides a strong indication that the preceding trend will resume as soon as the retracement is completed. Multiple long-term divergences (not shown in this indicator)
// increase the likelihood that the preceding trend has ended.
// An Uptrend is indicated when:
// 1. values remain in an 80/ 40 range
// 2. Presence of divergences
// 3. Hidden divergences are seen
// A Downtrend is indicated when:
// 1. values remain in a 60/20 range
// 2. Presence of
// 3. Hidden divergence is seen
// Personal additions to John Haydens concepts are horizontal breaks and diagonal trendline breaks. The 80/20 line color shows the last break of horizontal , while the
// line changes color with diagonal breaks. Additional is shown by 66.67 and 33.33 lines.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.