Get started

Search in scripts for "momentum"

Momentum Trader Strategy 3.0Momentum Trader 3.0 is a momentum trading strategy which uses volume to confirm market momentum driven moves. By default it only trades between 0900 and 1530 (designed for futures trading and can be toggled to 24/7) No repaint issues, what you see is real Toggles allow you to enable Long or Short independently which may work better or worse for your market Designed primarily for Day Trading (1-15m interval) Presently only the Short side is optimized, the Long works but overtrades a bit. I will be adding an option to remove the less useful signals and improve performance. Momentum Trader is a real and successful momentum strategy (which I use myself). It isn't a miracle 'always win' strategy but it is a steady workhorse. By combining high probability momentum trades and auto stop-losses, it takes a good slice of most rallies, a big slice of the grand drops, and avoids heavy sudden losses. Momentum Trader can be used in any timeframe. Your success depends on the volatility of the individual market. I recommend trading at 10m and below for high volatility instruments like ES/SPX while low volatility instruments can be traded at the 1h and beyond. At the level of 1D+ it also works as well but naturally as a momentum strategy it may take a while to pivot. Momentum Trader provides you with 3 long and 2 short entries which represent different levels of risk/reward. Like any real strategy, there can be periods of chop where the strategy will lose (small based on stop-loss) if the market is chopping very quickly back and forth or pivoting suddenly. As a rule, Momentum Trader attempts to avoid most of that by typically flagging trends which are established and confirmed. Different signals give you different degrees of confirmation and thus different risk/reward.
Pine Script® strategy
by Jmx
13
Momentum BFThe momentum strategy is simple, if price action is higher than it was for x bars back, and also higher than it was last candle, we have upwards momentum. This momentum will be positive until a candle closes lower than the previous candle and also lower than x bars back - at which point we have downwards momentum. The concept behind the Momentum Strategy is that when the momentum crosses from negative to positive, we go long and when it crosses from positive to negative we go short. We stay in that position until momentum crosses back the opposite direction. INSTRUCTIONS: Go long at the green background on the chart Go short at the red background on the chart The yellow lines are where your stop loss should be for longs The orange lines are where your stop loss should be for shorts I have included the options in Settings to change the stop loss type between ATR derived and Fixed percentage based. The default stop loss is a fixed 7%. You can also select if you want only longs, only shorts or both. The backtest was done with BTCUSD on Coinbase 1D.
Pine Script® strategy
by bennef
12
Squeeze Momentum Strategy SL TP v2Improved version of my Squeeze Momentum Strategy. Changes: Possible to change source: ohlc4, hl2, hlc3, close Enter your stop loss and take profit in %, NOT ticks Working and robust even without take profit / stop loss Yearly drawdown lower than 20% Backtesting Backtested on BTCPERP (FTX). It shows much better results on 1h timeframe (about 200% yearly, 55% in 2020) and relatively low drawdown to date. Initial Capital: $1000 Capital per trade: $1000 Including fee: 0.075% (buy + sell) side, type "taker" Strategy doesn't repaint. Shortly about Squeeze Momentum Indicator: This is a derivative of John Carter's "TTM Squeeze" volatility indicator, as discussed in his book "Mastering the Trade" (chapter 11). ---------- To access : sign up on FTX using ref link from my signature.
Pine Script® strategy
by Bitduke
17
Momentum Long StrategyThis is a momentum indicator strategy that plots 2 lines on the momentum indicator and if both cross above zero a long entry is generated and if both cross below zero a long exit is generated. It also has code to check and make sure the condition is still true when launching the official alert, which helps back testing and live results line up, however be sure to enter commission and slippage into the properties to accurately reflect profits. There's also an optional "percent" option and selecting the MOM1 option in the "MOM Choice" field as it uses a slightly different calculation and may provide better results than the standard momentum calculation. The zero line plotted on the indicator so you can clearly see when lines are crossing above or below zero. Also I'd like to thank @felipecms14 for his open source momentum code. I added back testing date ranges to this so you can easily pull up and see back tested results for a certain date range. I also added a buy and sell message field in the properties so you can launch alerts that will work with automated trading services. Simply enter your buy message and sell message into those fields in the properties and then when you create an alert enter {{strategy.order.alert_message}} into the alert body and it will dynamically pull in your buy and sell messages when it fires alerts.
Pine Script® strategy
by REV0LUTI0N
Momentum StrategyThis is a momentum indicator strategy that plots 2 lines on the momentum indicator and if both cross above zero a long entry is generated and if both cross below zero a short entry is generated. It also has code to check and make sure the condition is still true when launching the official alert, which helps back testing and live results line up, however be sure to enter commission and slippage into the properties to accurately reflect profits. There's also an optional "percent" option and selecting the MOM1 option in the "MOM Choice" field as it uses a slightly different calculation and may provide better results than the standard momentum calculation. Also I'd like to thank @felipecms14 for his open source momentum code. I added back testing date ranges to this so you can easily pull up and see back tested results for a certain date range.
Pine Script® strategy
by REV0LUTI0N
Momentum - Strategy ScriptBased on the bult-in momentum script, I took the liberty of updating it, adding two features. First, I would like to see the momentum oscillator showing percentage values, rather than absolute values. Visually facilitating analysis in long-term graphs. Second, just for fun*. I don't know how to explain the reason exactly, but for the strategy bult-in script, I didnt like the formula of "mom1" calculation. So I changed it for a formula that made the most sense to me. In any case, the original script remains in the code, optionally disabling the "percent" option and selecting the MOM1 option in the "MOM Choice" field, for the purpose of study and comparisons. The script below is opened for study and any suggestions will be welcome. I hope it can help the community. It's just the beginning. Study only purpose. I tried to follow the code conventions found in the link below. www.pinecoders.com
Pine Script® strategy
by felipecms14
Momentum Strategy IdeaThis strategy idea uses two, fast and slow, momentum indicators for trade setups and exits. This is a fast reacting strategy which is very useful in trending instruments on 1D and 4H timeframes. This is the implementation used in QuantCT app. You can set operation mode to be Long/Short or long-only. You also can set a fixed stop-loss or ignore it so that the strategy act solely based on entry and exit signals. Trade Idea When both momentum indicators are positive, asset is considered rising ( bullish ) and the plotted indicator becomes green. When both momentum indicators are negative, asset is considered falling ( bearish ) and the plotted indicator becomes red. Otherwise, asset is considered ranging and the plotted indicator becomes orange. Entry/Exit rules Enter LONG if both momentum indicators are greater than zero (i.e. when the plotted indicator becomes green). Enter SHORT if both momentum indicators are lower than zero (i.e. when the plotted indicator becomes red). EXIT market if none of the above (i.e. when the plotted indicator becomes orange). CAUTION It's just a bare trading idea - a profitable one. However, you can enhance this idea and turn it into a full trading strategy with enhanced risk/money management and optimizing it, and you ABSOLUTELY should do this! DON'T insist on using Long/Short mode on all instruments! This strategy performs much better in Long-Only mode on many (NOT All) trending instruments (Like BTC , ETH, etc.).
Pine Script® strategy
by QuantCT
Momentum Explosion 2CCI RSI"Momentum Explosion Template for Mobile Metatrader", that is a trading system trend momentum based on two Commodity Channel Index (CCI) , RSI and two Moving Averages.The trading signals are generated by the crossing of the moving averages confirmed by the agreement of the two CCIs and the RSI. Two Moving averages Filtered by double CCI and RSI Credit is to Dimitri Author Beejay (Forex Factory) Trading Rules Momentum Explosion Buy EMA 8 crosses upward SMA 26. CCI 34 periods > 0 CCI 55 periods > 0 RSI 26 > 48. Sell EMA 8 crosses downward SMA 26. CCI 34 periods < 0 CCI 55 periods < 0 RSI 26 < 48.
Pine Script® strategy
by capam
Momentum + Keltner Stochastic Combo)The Momentum-Keltner-Stochastic Combination Strategy: A Technical Analysis and Empirical Validation This study presents an advanced algorithmic trading strategy that implements a hybrid approach between momentum-based price dynamics and relative positioning within a volatility-adjusted Keltner Channel framework. The strategy utilizes an innovative "Keltner Stochastic" concept as its primary decision-making factor for market entries and exits, while implementing a dynamic capital allocation model with risk-based stop-loss mechanisms. Empirical testing demonstrates the strategy's potential for generating alpha in various market conditions through the combination of trend-following momentum principles and mean-reversion elements within defined volatility thresholds. 1. Introduction Financial market trading increasingly relies on the integration of various technical indicators for identifying optimal trading opportunities (Lo et al., 2000). While individual indicators are often compromised by market noise, combinations of complementary approaches have shown superior performance in detecting significant market movements (Murphy, 1999; Kaufman, 2013). This research introduces a novel algorithmic strategy that synthesizes momentum principles with volatility-adjusted envelope analysis through Keltner Channels. 2. Theoretical Foundation 2.1 Momentum Component The momentum component of the strategy builds upon the seminal work of Jegadeesh and Titman (1993), who demonstrated that stocks which performed well (poorly) over a 3 to 12-month period continue to perform well (poorly) over subsequent months. As Moskowitz et al. (2012) further established, this time-series momentum effect persists across various asset classes and time frames. The present strategy implements a short-term momentum lookback period (7 bars) to identify the prevailing price direction, consistent with findings by Chan et al. (2000) that shorter-term momentum signals can be effective in algorithmic trading systems. 2.2 Keltner Channels Keltner Channels, as formalized by Chester Keltner (1960) and later modified by Linda Bradford Raschke, represent a volatility-based envelope system that plots bands at a specified distance from a central exponential moving average (Keltner, 1960; Raschke & Connors, 1996). Unlike traditional Bollinger Bands that use standard deviation, Keltner Channels typically employ Average True Range (ATR) to establish the bands' distance from the central line, providing a smoother volatility measure as established by Wilder (1978). 2.3 Stochastic Oscillator Principles The strategy incorporates a modified stochastic oscillator approach, conceptually similar to Lane's Stochastic (Lane, 1984), but applied to a price's position within Keltner Channels rather than standard price ranges. This creates what we term "Keltner Stochastic," measuring the relative position of price within the volatility-adjusted channel as a percentage value. 3. Strategy Methodology 3.1 Entry and Exit Conditions The strategy employs a contrarian approach within the channel framework: Long Entry Condition: Close price > Close price periods ago (momentum filter) KeltnerStochastic < threshold (oversold within channel) Short Entry Condition: Close price < Close price periods ago (momentum filter) KeltnerStochastic > threshold (overbought within channel) Exit Conditions: Exit long positions when KeltnerStochastic > threshold Exit short positions when KeltnerStochastic < threshold This methodology aligns with research by Brock et al. (1992) on the effectiveness of trading range breakouts with confirmation filters. 3.2 Risk Management Stop-loss mechanisms are implemented using fixed price movements (1185 index points), providing definitive risk boundaries per trade. This approach is consistent with findings by Sweeney (1988) that fixed stop-loss systems can enhance risk-adjusted returns when properly calibrated. 3.3 Dynamic Position Sizing The strategy implements an equity-based position sizing algorithm that increases or decreases contract size based on cumulative performance: $ContractSize = \min(baseContracts + \lfloor\frac{\max(profitLoss, 0)}{equityStep}\rfloor - \lfloor\frac{|\min(profitLoss, 0)|}{equityStep}\rfloor, maxContracts)$ This adaptive approach follows modern portfolio theory principles (Markowitz, 1952) and Kelly criterion concepts (Kelly, 1956), scaling exposure proportionally to account equity. 4. Empirical Performance Analysis Using historical data across multiple market regimes, the strategy demonstrates several key performance characteristics: Enhanced performance during trending markets with moderate volatility Reduced drawdowns during choppy market conditions through the dual-filter approach Optimal performance when the threshold parameter is calibrated to market-specific characteristics (Pardo, 2008) 5. Strategy Limitations and Future Research While effective in many market conditions, this strategy faces challenges during: Rapid volatility expansion events where stop-loss mechanisms may be inadequate Prolonged sideways markets with insufficient momentum Markets with structural changes in volatility profiles Future research should explore: Adaptive threshold parameters based on regime detection Integration with additional confirmatory indicators Machine learning approaches to optimize parameter selection across different market environments (Cavalcante et al., 2016) References Brock, W., Lakonishok, J., & LeBaron, B. (1992). Simple technical trading rules and the stochastic properties of stock returns. The Journal of Finance, 47(5), 1731-1764. Cavalcante, R. C., Brasileiro, R. C., Souza, V. L., Nobrega, J. P., & Oliveira, A. L. (2016). Computational intelligence and financial markets: A survey and future directions. Expert Systems with Applications, 55, 194-211. Chan, L. K. C., Jegadeesh, N., & Lakonishok, J. (2000). Momentum strategies. The Journal of Finance, 51(5), 1681-1713. Jegadeesh, N., & Titman, S. (1993). Returns to buying winners and selling losers: Implications for stock market efficiency. The Journal of Finance, 48(1), 65-91. Kaufman, P. J. (2013). Trading systems and methods (5th ed.). John Wiley & Sons. Kelly, J. L. (1956). A new interpretation of information rate. The Bell System Technical Journal, 35(4), 917-926. Keltner, C. W. (1960). How to make money in commodities. The Keltner Statistical Service. Lane, G. C. (1984). Lane's stochastics. Technical Analysis of Stocks & Commodities, 2(3), 87-90. Lo, A. W., Mamaysky, H., & Wang, J. (2000). Foundations of technical analysis: Computational algorithms, statistical inference, and empirical implementation. The Journal of Finance, 55(4), 1705-1765. Markowitz, H. (1952). Portfolio selection. The Journal of Finance, 7(1), 77-91. Moskowitz, T. J., Ooi, Y. H., & Pedersen, L. H. (2012). Time series momentum. Journal of Financial Economics, 104(2), 228-250. Murphy, J. J. (1999). Technical analysis of the financial markets: A comprehensive guide to trading methods and applications. New York Institute of Finance. Pardo, R. (2008). The evaluation and optimization of trading strategies (2nd ed.). John Wiley & Sons. Raschke, L. B., & Connors, L. A. (1996). Street smarts: High probability short-term trading strategies. M. Gordon Publishing Group. Sweeney, R. J. (1988). Some new filter rule tests: Methods and results. Journal of Financial and Quantitative Analysis, 23(3), 285-300. Wilder, J. W. (1978). New concepts in technical trading systems. Trend Research.
Pine Script® strategy
by EdgeTools
Momentum Strategy [MA Crossover + Squeeze Release + Alerts]This is a Strategy with associated visual indicators and Buy/Sell/Close Alerts for the Squeeze Momentum Indicator . Development Notes ------------------------- This is a fork of LazyBear's Squeeze Momentum Indicator histogram with an added moving average crossover for multiple trade signal confirmation. Functionality for Multi-Timeframe Resolution was also enabled and code was updated for PineScript v4 compatibility. Strategy Description ------------------------- Enter trade when the active crossover period (identified by background crossover indicator/zone) correlates with a squeeze release (black to gray cross along midline). BUY Long if momentum in uptrend or SELL Short if in downtrend. Close trade when momentum reverses. Alerts configured for entering Long/Short position and to Close order. Designed to have only one open long or short position at a time (no pyramiding) with an associated close order for each. Indicator Visuals -------------------- Crossover zone background (green or red) based on last crossover direction (only buy orders are triggered in a buy zone and sell orders in a sell zone) Moving average crossover line matches trend (buy upwards on green and sell downwards on red) Buy (green circle) and Sell (red circle) signals at the point of crossover Buy (green cross) and Sell (red cross) signals at squeeze release on the midline Long (green arrow) and Short (red arrow) order label when every indicator is triggered together Close (purple arrow) and label when either trend or crossover zone changes Recommend backtesting with the resolution set to current timeframe to avoid repainting; no other known repainting. There is a current bug or flaw in the script where all the Close and some of the Long and Short orders are not executed by the strategy (this doesn't affect the visual indicators, only the strategy). Note that the provided backtest result is based on a position sizing of 10% equity with 100k initial capital. The 15-minute timeframe performed the best, with the 30-minute a close second, and 5/45-minute tied for third. Profit/loss went into the red when expanding out to 2-hours or beyond. I suspect this could be improved upon if you follow the Alerts on the oscillator versus rely solely on the strategy (due to the aforementioned issue with all entry and exit positions not being depicted). Disclaimer Past performance may not be indicative of future results. Due to various factors, including changing market conditions, the strategy may no longer perform as well as in historical backtesting. This post and the script are not intended to provide any financial advice. Script is currently protected (due to the extensive development in the strategy) to prevent the source from being copied and sold.
Pine Script® strategy
by IronCasper
1
MomentumInvest TrendFollower [@TradersVenue]VSA CheatSheet - Have kept the chart clean and clear not by putting each signal pattern name. What matters is identifying the real price action than the pattern name. To keep the charts clutter free, haven't put the signal name under/above the candle. Rejection or reversal patterns Green Circle - Typical SellingClimax, Stopping Volume and Bag Holding signal patterns as per VSA. Strong price volume action but price rejection at lower level. Red Circle - Typical Buying Climax, End Of Rising, Supply Overcoming Demand signal patterns as per VSA. Strong price volume action but price rejection at higher level. Green Square - Typical bullish TrendReversal candle as per VSA. Bullish breakout bar immediately after a bearish breakout bar and engulfing the previous one or cover max part of it. Red Square - Typical bearish TrendReversal candle as per VSA. Bearish breakout bar immediately after a bullish breakout bar and engulfing the previous one or cover max part of it. Momentum breakout patterns Blue/Green Star - Bullish breakouts. Downthrust bars with significant price volume action. Green if smaller low weak otherwise blue. Red/Pink Star - Bearish breakouts. Downthrust bars with significant price volume action. Red if low higher weak else pink. Candle Color Green - Bullish with strong price action. Good to enter long towards close with SL of day low. System suggests quantity as per 2% trading rule. One can play with risk defined option strategies or cash segment as per quantity suggested. Red - Bearish with strong price action. Good to enter short towards close with SL of day high. System suggests quantity as per 2% trading rule. One can play with risk defined option strategies like bear put spread or bear call spreads or go for hedged shorts. Pink - Bearish with muted price action. Trail SL. Better to avoid trading these candles. Light blue - Bullish with muted price action. Trail SL. Better to avoid trading these candles. Plotted EMA Ribbon gives a sense of the strength of momentum. When each MA is placed with wide gaps momentum is strong. When there is EMA confluence, chances of trend strength are weakening. Background color of the chart green indicates bullishness in the underlying and red indicates that bearish pressure in the scrip. If the background color is green and you see one Blue/Green star candle it's good to go long. If the background color is red and you see one Red/Pink star candle it's good to go short. A word of caution: Trading breakouts is very good. But you need to prepare for breakout failures. Here the system picks wide range bars for going long or short that means SL is wide probably 3% and above. Also if you notice after a strong PV breakout if price sustains below that it can see long unwinding pressure and simillary after a strong PV breakdown, if price sustains above the breakdown candle, chances of short covering is higher. Here money management and risk management becomes very important. Same has been included as part of the indicator to give you an optimal quantity for trade to keep the drawdowns lower. If you enable (1) RECO message and (2) Show Strategy (Else Study)? options then it shows a RECO box with quantity calculated as per 2% loss per trade rule. Lot of risk management, scale up/down for compounding is also available. You may try out those options one by one. This indicator needs to be used along with the “VSA + Volume Oscillator ”, because this setup relies on VSA (Volume Spread Analysis). The overall usage will be provided through a demo to the subscribing users. In order to gain access to this indicator you may contact me using the below signature.
Pine Script® strategy
by TradersVenue
1
Squeeze Momentum Strategy [LazyBear] Buy Sell TP SL Alerts-Modified version of Squeeze Momentum Indicator by @LazyBear. -Converted to version 5, -Taken inspiration from @KivancOzbilgic for its buy sell calculations, -Used @Bunghole strategy template with Take Profit, Stop Loss and Enable/Disable Toggles -Added Custom Date Backtesting Module ------------------------------------------------------------------------------------------------------------------------ All credit goes to above Problem with original version: The original Squeeze Momentum Strategy did not have buy sell signals and there was alot of confusion as to when to enter and exit. There was no proper strategy that would allow backtesting on which further analysis could be carried out. There are 3 aspects this strategy: 1 ) Strategy Logic (easily toggleable from the dropdown menu from strategy settings) - LazyBear (I have made this simple by using Kivanc technique of Momentums Moving Average Crossover, BUY when MA cross above signal line, SELL when crossdown signal line) - Zero Crossover Line (BUY signal when crossover zero line, and SELL crossdown zero line) 2) Long Short TP and SL - In strategies there is usually only 1 SL and 1 TP, and it is assumed that if a 2% SL giving a good profit %, then it would be best for both long and short. However this is not the case for many. Many markets/pairs, go down with much more speed then they go up with. Hence once we have a profitable backtesting setting, then we should start optimizing Long and Short SL's seperately. Once that is done, we should start optimizing for Long and Short TP's separately, starting with Longs first in both cases. 3) Enable and Disable Toggles of Long and Short Trades - Many markets dont allow short trades, or are not suitable for short trades. In this case it would be much more feasible to disable "Short" Trading and see results of Long Only as a built in graphic view of backtestor provides a more easy to understand data feed as compared to the performance summary in which you have to review long and short profitability separately. 4) Custom Data Backtesting - One of most crucial aspects while optimizing for backtesting is to check a strategies performance on uptrends, downtrend and sideways markets seperately as to understand the weak points of strategy. - Once you enable custom date backtesting, you will see lines on the chart which can be dragged left right based on where you want to start and end the backtesting from and to. Note: - Not a financial advise - Open to feedback, questions, improvements, errors etc. - More info on how the squeeze momentum works visit LazyBear indicator link: Happy Trading! Cheers M Tahreem Alam @mtahreemalam
Pine Script® strategy
by mtahreemalam
11
MACD MOMENTUM STRATEGYHey, First of I'm not so familiar with Pine Editor, yet. But a do need some help with a trick thing I*ve been working on. As you can see I*ve merge the MACD and the MOMENTUM indicators in the same "chart" this have been working pretty well for me as a trading strategy. But now a chat tho create a real strategy with Pine Editor based on the same data. The thing is that I can't seem tho get the MOMENTUM indicator to and the MACD indicator in the same (different) scale in my strategy as when I merge them. I suspect this got something to do with my chose of source för the MOMENTUM indicator, but I'm not 100. I would be grateful for all kinds of feedback and tips for a solutions on this. Thanks.
Pine Script® strategy
by Sebastiansj
1
Inside Bar Momentum StrategyDescription for the strategy: It's an inside bar momentum trade, looking for candlestick formations breakout and trading momentum with a short stop and target to 80% of the initial candle. The entry is on a break of the original candle, stop loss is at 20% of the candle range (from the entry). In case there's a new inside bar formation, all existing orders and trades are cancelled and new orders are placed for the new levels.
Pine Script® strategy
by alexpunct
7
Squeeze Momentum Indicator Strategy [LazyBear + PineIndicators]The Squeeze Momentum Indicator Strategy (SQZMOM_LB Strategy) is an automated trading strategy based on the Squeeze Momentum Indicator developed by LazyBear, which itself is a modification of John Carter's "TTM Squeeze" concept from his book Mastering the Trade (Chapter 11). This strategy is designed to identify low-volatility phases in the market, which often precede explosive price movements, and to enter trades in the direction of the prevailing momentum. Concept & Indicator Breakdown The strategy employs a combination of Bollinger Bands (BB) and Keltner Channels (KC) to detect market squeezes: Squeeze Condition: When Bollinger Bands are inside the Keltner Channels (Black Crosses), volatility is low, signaling a potential upcoming price breakout. When Bollinger Bands move outside Keltner Channels (Gray Crosses), the squeeze is released, indicating an expansion in volatility. Momentum Calculation: A linear regression-based momentum value is used instead of traditional momentum indicators. The momentum histogram is color-coded to show strength and direction: Lime/Green: Increasing bullish momentum Red/Maroon: Increasing bearish momentum Signal Colors: Black: Market is in a squeeze (low volatility). Gray: Squeeze is released, and volatility is expanding. Blue: No squeeze condition is present. Strategy Logic The script uses historical volatility conditions and momentum trends to generate buy/sell signals and manage positions. 1. Entry Conditions Long Position (Buy) The squeeze just released (Gray Cross after Black Cross). The momentum value is increasing and positive. The momentum is at a local low compared to the past 100 bars. The price is above the 100-period EMA. The closing price is higher than the previous close. Short Position (Sell) The squeeze just released (Gray Cross after Black Cross). The momentum value is decreasing and negative. The momentum is at a local high compared to the past 100 bars. The price is below the 100-period EMA. The closing price is lower than the previous close. 2. Exit Conditions Long Exit: The momentum value starts decreasing (momentum lower than previous bar). Short Exit: The momentum value starts increasing (momentum higher than previous bar). Position Sizing Position size is dynamically adjusted based on 8% of strategy equity, divided by the current closing price, ensuring risk-adjusted trade sizes. How to Use This Strategy Apply on Suitable Markets: Best for stocks, indices, and forex pairs with momentum-driven price action. Works on multiple timeframes but is most effective on higher timeframes (1H, 4H, Daily). Confirm Entries with Additional Indicators: The author recommends ADX or WaveTrend to refine entries and avoid false signals. Risk Management: Since the strategy dynamically sizes positions, it's advised to use stop-losses or risk-based exits to avoid excessive drawdowns. Final Thoughts The Squeeze Momentum Indicator Strategy provides a systematic approach to trading volatility expansions, leveraging the classic TTM Squeeze principles with a unique linear regression-based momentum calculation. Originally inspired by John Carter’s method, LazyBear's version and this strategy offer a refined, adaptable tool for traders looking to capitalize on market momentum shifts.
Pine Script® strategy
by PineIndicators
2
BTCUSD Momentum After Abnormal DaysThis indicator identifies abnormal days in the Bitcoin market (BTCUSD) based on daily returns exceeding specific thresholds defined by a statistical approach. It is inspired by the findings of Caporale and Plastun (2020), who analyzed the cryptocurrency market's inefficiencies and identified exploitable patterns, particularly around abnormal returns. Key Concept: Abnormal Days: Days where the daily return significantly deviates (positively or negatively) from the historical average. Positive abnormal days: Returns exceed the mean return plus k times the standard deviation. Negative abnormal days: Returns fall below the mean return minus k times the standard deviation. Momentum Effect: As described in the academic paper, on abnormal days, prices tend to move in the direction of the abnormal return until the end of the trading day, creating momentum effects. This can be leveraged by traders for profit opportunities. How It Works: Calculation: The script calculates the daily return as the percentage difference between the open and close prices. It then derives the mean and standard deviation of returns over a configurable lookback period. Thresholds: The script dynamically computes upper and lower thresholds for abnormal days using the mean and standard deviation. Days exceeding these thresholds are flagged as abnormal. Visualization: The mean return and thresholds are plotted as dynamic lines. Abnormal days are visually highlighted with transparent green (positive) or red (negative) backgrounds on the chart. References: This indicator is based on the methodology discussed in "Momentum Effects in the Cryptocurrency Market After One-Day Abnormal Returns" by Caporale and Plastun (2020). Their research demonstrates that hourly returns during abnormal days exhibit a strong momentum effect, moving in the same direction as the abnormal return. This behavior contradicts the efficient market hypothesis and suggests profitable trading opportunities. "Prices tend to move in the direction of abnormal returns till the end of the day, which implies the existence of a momentum effect on that day giving rise to exploitable profit opportunities" (Caporale & Plastun, 2020).
Pine Script® strategy
by EdgeTools
QaSH Momentum EntriesThis script implements a variation of the Rob Hoffman's Inventory Retracement strategy, with entries being triggered by inventory retracement candles. Various confirmation parameters are available, such as EMA slope for momentum confirmation multi-timeframe EMA multi-timeframe Ehler's mother of all moving averages volume confirmation Position management tools include up to 3 orders can be tracked simultaneously and independently as a method of pyramiding into and out of a position unique order ID's that pass along into the alert message (for helping the automation service manage positions) entry filters based on current position profit entry filters based on entry frequency trade timers that can end a position after a specified amount of time moving the stoploss when in profit various parameters can be passed along into the alerts
Pine Script® strategy
by ParabolicValue