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Momentum Eruption
Updated
Indicator: Momentum Eruption, using momentum to capture swing trading.
⏩Principle overview:
The core of Momentum Eruption is divided into two parts. One is to identify the trend direction. This is relatively clear. It is usually more effective to identify the direction through moving averages such as SMA or EMA. The second is to identify trading opportunities and use the idea of following the trend in large cycle and reversing the trend in small cycle. For example, when the large cycle is bullish and the small cycle is callback, if there are oversold conditions, a rebound from the previous low support, a long downward pin-bar, and an increase in trading volume at the same time, the extreme value of the price rebound or correction can be calculated. When following the trend, go long at the extreme value of the callback and go short at the extreme value of the rebound.
⏩Usage：
Signal: "B" stands for long buy signal. "S" stands for short sell signal.
Support and resistance: "Purple areas" represent support areas and "yellow areas" represent resistance areas.
🧿Tip I：
Adaptive signal. Take long buying as an example. When the purple area representing the support range appears, the market is bullish. If a "B" signal appears at this time, it means that you can consider buying and do a wave of short-term trading.
Usually there will be many short-term trading opportunities in a wave of rising trend.
🧿Tip II：
Since the market is reciprocating, the indicator will prompt many signals when it is trending. Each signal is observed and used independently, and it does not prompt the closing and profit taking points. Take profit and stop loss can be set according to your own trading cycle and style.
Regardless of whether it rises or falls, there will always be many swings that can be captured in the trend.
*The signals in the indicators are for reference only and not intended as investment advice. Past performance of a strategy is not indicative of future earnings results.
⏩Principle overview:
The core of Momentum Eruption is divided into two parts. One is to identify the trend direction. This is relatively clear. It is usually more effective to identify the direction through moving averages such as SMA or EMA. The second is to identify trading opportunities and use the idea of following the trend in large cycle and reversing the trend in small cycle. For example, when the large cycle is bullish and the small cycle is callback, if there are oversold conditions, a rebound from the previous low support, a long downward pin-bar, and an increase in trading volume at the same time, the extreme value of the price rebound or correction can be calculated. When following the trend, go long at the extreme value of the callback and go short at the extreme value of the rebound.
⏩Usage：
Signal: "B" stands for long buy signal. "S" stands for short sell signal.
Support and resistance: "Purple areas" represent support areas and "yellow areas" represent resistance areas.
🧿Tip I：
Adaptive signal. Take long buying as an example. When the purple area representing the support range appears, the market is bullish. If a "B" signal appears at this time, it means that you can consider buying and do a wave of short-term trading.
Usually there will be many short-term trading opportunities in a wave of rising trend.
🧿Tip II：
Since the market is reciprocating, the indicator will prompt many signals when it is trending. Each signal is observed and used independently, and it does not prompt the closing and profit taking points. Take profit and stop loss can be set according to your own trading cycle and style.
Regardless of whether it rises or falls, there will always be many swings that can be captured in the trend.
*The signals in the indicators are for reference only and not intended as investment advice. Past performance of a strategy is not indicative of future earnings results.
Release Notes
Update - 2023.09.06Optimize the alarm function. If you need to monitor the "B" or "S" signal, when creating an alarm, set the condition bar to:
Momentum Eruption --> "B" or "S" --> Crossing Up --> value -> 0.5
Disclaimer
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