Measure Volume, Momentum, Trend, Volatility

The Measure Volume, Momentum, Trend, Volatility indicator consolidates four essential market pillars into a single oscillator pane to provide a comprehensive view of price action dynamics. By integrating J. Welles Wilder’s core concepts, it enables traders to identify trend strength, momentum shifts, and volume flow without cluttering the main price chart.

Usage

The indicator is designed to be a "one-stop" interface for technical analysis. Traders can use the combined data to spot high-probability entries where multiple factors align:

• Momentum & Volume Alignment: Use the RSI and MFI lines in conjunction. When both indicators show divergence against price action at overbought or oversold levels, it often signals an impending trend reversal.
• Trend Confirmation: The Parabolic SAR (diamonds at the bottom) provides a baseline for trend direction. Trading in the direction of the PSAR while the ADX (circles at the top) is above the "Strong" threshold (default 20) helps ensure participation in trending markets rather than ranging ones.
• Volatility Filtering: The ADX circles change color based on strength. A gray circle suggests weak volatility, while a colored circle indicates a trending environment suitable for momentum strategies.

Details

This tool implements four classic technical indicators within a normalized 0-100 scale:

• Relative Strength Index (RSI): Measures the speed and change of price movements to identify momentum.
• Money Flow Index (MFI): Often called volume-weighted RSI, it uses price and volume to identify buying or selling pressure.
• Directional Movement Index (DMI/ADX): Composed of Positive DI, Negative DI, and the Average Directional Index to quantify trend strength and direction.
• Parabolic SAR: A trend-following indicator used to determine the direction of an asset's momentum and potential reversal points.

Settings

RSI

• Show RSI: Toggles the visibility of the RSI line.
• Length/Source: Configures the lookback period and price input for the calculation.
• Levels: Adjustable Overbought (70) and Oversold (30) thresholds.

MFI

• Show MFI: Toggles the visibility of the Money Flow Index line.
• Length/Source: Configures the lookback period and price input (typically HLC3).
• Levels: Adjustable Overbought (80) and Oversold (20) thresholds.

DMI

• Show DMI: Toggles the ADX/DI status circles at the top of the pane.
• Length/Signal Length: Lookback periods for the DMI components.
• Strong ADX Level: The threshold (e.g., 20 or 25) at which a trend is considered significant.

SAR

• Show Parabolic SAR: Toggles the trend diamonds at the bottom of the pane.
• Start/Increment/Max: Standard parameters for the Parabolic Stop and Reverse calculation.

FAQ

How do I interpret the top and bottom circles?

The top circles represent Volatility (ADX and DI winner). The bottom diamonds represent Trend direction based on the Parabolic SAR (green for uptrend, red for downtrend).

Can I set alerts for trend shifts?

Yes, the script includes built-in alert conditions for RSI/MFI overbought/oversold levels, ADX becoming strong, and Parabolic SAR trend flips.

How can I access Measure Volume, Momentum, Trend, Volatility?

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