Pro Momentum Calculator

The Pro Momentum Calculator indicator is a statistical analysis tool that evaluates market momentum by tracking consecutive candle closes relative to a baseline and calculating the probability of subsequent price direction. It helps traders identify trend strength and exhaustion levels by quantifying historical price behavior during established streaks.

Usage

The tool displays a Simple Moving Average (SMA) acting as the momentum baseline and counts how many consecutive candles have closed above or below it.

• Trend Identification: When candles consistently close above the SMA, the tool identifies an upward momentum streak. Conversely, closes below the SMA indicate downward momentum.
• Probability Analysis: A dashboard provides real-time statistics based on the current streak length. For example, if the current price has closed above the SMA for 5 consecutive bars, the table displays the historical probability of the 6th bar also closing above the SMA.
• Counter Labels: Numerical labels appear above or below bars to provide an immediate visual count of the current streak, allowing traders to quickly see how far a trend has progressed without manually counting candles.

Details

The script utilizes a matrix to store historical data of candle streaks. Every time a streak of a certain length occurs, the indicator records whether the following candle continued the trend or reversed.

• Logic: It tracks "Green" streaks (Close > SMA) and "Red" streaks (Close < SMA).
• Prediction Model: The "Upcoming Uptrend/Downtrend" percentages are derived from the frequency of continuation versus reversal for every specific streak length recorded in the lookback period.
• Momentum Baseline: The core logic relies on a long-term momentum period (defaulting to 200) to ensure the streaks are measured against a significant trend filter.

Settings

Momentum Parameters

• ATR Length: Sets the period for the Average True Range used to offset visual labels from price action.
• Momentum Periods: Determines the length of the Simple Moving Average (SMA) used as the threshold for momentum streaks.

Table

• Location: Adjusts where the statistical dashboard is positioned on the chart.
• Size: Changes the scale of the text and cells within the dashboard.

Data View

• Show: Options include "Active" (shows only the current streak's statistics) or "All" (displays the full historical probability table for all streak lengths).

Counter

• Show Candle Counter: Toggles the visibility of the numerical labels displayed above or below the price bars.

FAQ

How do I use the Pro Momentum Calculator?

You can use it to determine if a trend is overextended or likely to continue. By looking at the "Upcoming" percentage columns, you can see if historical data favors a continuation of the current streak or a mean reversion toward the SMA.

What does a high "Upcoming" percentage mean?

A high percentage in the "Upcoming Uptrend" column indicates that, historically, when a streak reached its current length, the following candle closed above the momentum line more often than not.

How can I access this tool?

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