Multi momentum indicator

The Multi momentum indicator tool provides a comprehensive suite of momentum oscillators within a single pane, allowing traders to monitor multiple sentiment and trend strength gauges simultaneously. By normalizing various indicators to a unified scale, it facilitates a streamlined analysis of market momentum across different methodologies.

Usage

The Multi momentum indicator is designed to be a centralized hub for momentum analysis. Users can toggle specific oscillators based on their trading strategy:

• RSI & Stochastic RSI: These are active by default and are scaled to a -100 to 100 range. This scaling shifts traditional overbought/oversold levels; for example, levels of 40 and 60 represent significant zones instead of the standard 70/30 or 80/20.
• MACD & CCI: When activated, these are typically limited to the -100 to 100 range to maintain visual consistency within the pane, though a "Full" option exists to view their original, unbounded values.
• Multi-Timeframe Analysis: The indicator includes a secondary RSI that can be set to any timeframe (e.g., Daily RSI on a 1-hour chart), allowing for higher-timeframe trend filtering.
• Visual Aids: Users can enable "Crosses" to see circle markers when signal lines intersect (available for StochRSI, MACD, and WaveTrend) or use the "Extreme Color Change" to highlight when the RSI enters deep overbought or oversold territory.

Details

The core functionality of this tool relies on the normalization of disparate indicators. For bounded oscillators like RSI, StochRSI, and MFI, the script transforms the standard 0-100 scale into a -100 to 100 range using the formula (Value - 50) * 2.

Included Oscillators:

• Relative Strength Index (RSI): Measures the speed and change of price movements.
• Stochastic RSI: Applies the Stochastic formula to RSI values for increased sensitivity.
• MACD: A trend-following momentum indicator showing the relationship between two moving averages.
• CCI (Commodity Channel Index): Measures the current price level relative to an average price level over a given period.
• WaveTrend: An oscillator based on the difference between an EMA of price and an EMA of the absolute deviation.
• MFI (Money Flow Index): A volume-weighted version of the RSI.

Settings

RSI / Second RSI

• Show Relative Strength Index: Toggles the primary RSI visibility.
• RSI length: Sets the lookback period for the primary RSI.
• Show extreme RSI color change: Changes the RSI plot color when it exceeds ±40.
• Second RSI Timeframe: Determines the timeframe for the secondary RSI calculation.

Stoch RSI / MACD / CCI

• StochRSI K/D/Lengths: Standard parameters for the Stochastic RSI calculation.
• Show MACD (limited): Displays the MACD clipped to the -100/100 range.
• Show full MACD: Displays the MACD without range clipping.
• CCI length: The lookback period for the Commodity Channel Index.

WaveTrend / MFI / Background

• WT Channel/Average Length: Parameters for the WaveTrend calculation.
• Show WaveTrend difference cloud: Displays a visual area between the WT signal lines.
• Show Fibonacci background: Toggles a background gradient based on Fibonacci levels (0, 23.6, 38.2, 50, 61.8, 78.6, 100).

FAQ

How do I use the secondary timeframe RSI?

In the settings under "Second RSI", enable the "Show second TF Relative Strength Index" option and select your desired timeframe from the dropdown menu. This will plot the higher timeframe momentum directly on your current chart.

Why are the overbought and oversold levels different?

To allow multiple indicators to coexist in one pane, several are scaled from -100 to 100. In this scale, the zero line is the midpoint. Therefore, levels like 40/-40 and 60/-60 are used as thresholds instead of the standard 0-100 percentages.

How can I access the Multi momentum indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.