The Underlying Concept :
What is Momentum?
The Momentum shown is derived from a Mathematical Formula, SUPERTREND. When price closes above Supertrend Its bullish Momentum when its below Supertrend its Bearish Momentum. This indicator scans for candle closes on the current chart and when there is a shift in momentum (price closes below or above SUPERTREND) it notifies the trader with a Bar Color change.
- If you want to optimize the rate of signals to better fit your trading plan you would change the Factor input and ATR Length input. Increase factor and ATR Length to decrease the frequency of signals and decrease the Factor and ATR Length to increase the frequency of signals.
Quick TIP! : You can Sync all VFX SuperTrend Indicators together! All VFX SuperTrend indicators display unique information but its all derived from that same Momentum Formula. Keep the Factor input and ATR Length the same on other VFX SuperTrend indicators to have them operating on the same data.
- The indicator has a candle overlay option you can toggle ON or OFF. If toggled ON the candles color will represent the momentum of your current chart ( bullish or bearish Momentum)
your able to change the colors that represent bullish or bearish to your preference
- You can toggle on which shows the exact candle momentum switched sides
your able to change the colors that represent a bullish switch or bearish switch to your preference
- The trader can specify which point you would like your stop loss to reference. (Low and High) Which uses the Low of the Momentum signal as the reference for your Stop Loss during buy signals and the High as the reference during sell signals. Or (Lowest Close and Highest Close) which uses the Lowest Close of the Momentum signal as the reference for your Stop Loss during buys and the Highest Close as the reference during sells.
- The colors that represent your Stop Loses and Take Profits can also be changed
Risk Management Inputs
- Your Risk MANAGMENT section is used to set up how your Stop Loss and Take Profit are calculated
- You have the option to take in account Volatility when calculating your Stop Loss. A adjusted ATR formula is used to achieve this. Increase Stop Loss Multiplier from 0 to widen stops.
- Increase Take Profit Multiplier from 0 to access visual Take Profit Levels based on your Stop Loss. This will be important for traders that Prefer trading using risk rewards. For Example: If the the Take Profit Multiplier is 3 a Take Profit level 3 times the size or your stop loss from your entry will be shown and a price number corresponding to that Take Profit Level becomes available.
- Enter your current Account size, Bet Percentage and Fixed Spread to get your Position Size for each trade
-Toggle on the Current Trade Chart and easily get the size of your Position and the exact price of your Take Profit and Stop Loss.
You can increase the Size of the Current Trade Chart= Tiny, Small, Normal, Large, Huge and change the Position of the Current
trade Chart to your preference, (Top- Right, Center, Left) (Middle- Right, Center, Left) (Bottom- Right, Center, Left).
How it can be used ?
- Enter Trades and always know where your stop is going to be
- Eliminate the need to manual calculate Position Size
- Get a consistent view of the current charts momentum
- Systematical enter trades
- Reduce information overload
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.