OPEN-SOURCE SCRIPT
Momentum & Money Flow Strategy with Triple EMA Smoothing
Hi, this is a Momentum and Money flow strategy that works in all time frames.
Explanation:
1. Triple EMA Smoothing:
• The raw momentum is calculated using ta.roc().
• The line is then smoothed by applying three successive exponential moving averages via ta.ema(). This chained approach helps reduce noise and produce a smoother signal line.
2. Trading Logic:
• Long Signals: Occur when the smoothed momentum is positive and the MFI is above the middle level.
• Short Signals: Occur when the smoothed momentum is negative and the MFI is below the middle level.
• Exits are triggered based on turning point conditions in both momentum and the MFI.
3. Plotting:
• The smoothed momentum is plotted in blue, and the MFI is plotted in orange, with a horizontal line marking the MFI middle level for reference.
This forward-thinking approach should better capture the underlying market momentum while reducing noise. Please backtest and fine-tune the parameters to align with your trading style on the 7-minute chart.
Explanation:
1. Triple EMA Smoothing:
• The raw momentum is calculated using ta.roc().
• The line is then smoothed by applying three successive exponential moving averages via ta.ema(). This chained approach helps reduce noise and produce a smoother signal line.
2. Trading Logic:
• Long Signals: Occur when the smoothed momentum is positive and the MFI is above the middle level.
• Short Signals: Occur when the smoothed momentum is negative and the MFI is below the middle level.
• Exits are triggered based on turning point conditions in both momentum and the MFI.
3. Plotting:
• The smoothed momentum is plotted in blue, and the MFI is plotted in orange, with a horizontal line marking the MFI middle level for reference.
This forward-thinking approach should better capture the underlying market momentum while reducing noise. Please backtest and fine-tune the parameters to align with your trading style on the 7-minute chart.
Open-source script
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 publications is governed by House rules. You can favorite it to use it on a chart.
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