Momentum Candle V2

The Momentum Candle V2 indicator provides a structured and adaptive approach to detecting high-probability momentum candles in intraday markets by combining dynamic pip thresholds with wick-to-body ratio filters.

Usage

The Usage section describes how to interpret the signals generated by the script. Traders can apply the tool to intraday timeframes (M5, M15, or H1) to identify decisive price movements.

• Bullish Signals: A blue upward triangle (🔻) appears below a candle when a significant bullish body is detected with minimal upper wick rejection.
• Bearish Signals: A red downward triangle (🔺) appears above a candle when a significant bearish body is detected with minimal lower wick rejection.

The script is designed for real-time timing; triangle markers appear during the final moments of a candle (20–90 seconds before close) to signal potential momentum confirmation. Traders often combine these signals with EMA trend filters, support/resistance levels, or volume analysis to refine entries.

Details

The script implements a multi-layered methodology to ensure signal quality:

• Dynamic Pip Calibration: Minimum body size requirements are automatically adjusted based on the specific asset (e.g., XAUUSD, BTCUSD, or major Forex pairs) and the active timeframe.
• Wick-to-Body Ratio Filtering: To ensure momentum is decisive, the tool filters out candles where the total wick length exceeds 30% of the total candle range.
• Directional Validation: Bullish momentum requires the lower wick to be shorter than the upper wick, while bearish momentum requires the upper wick to be shorter than the lower wick.
• Real-Time Logic: Calculations are processed in real-time, ensuring that signals are based on current price action without repainting issues on confirmed candles.

Settings

The settings are categorized by asset class and timeframe to allow for precise volatility calibration:

• Asset-Specific Min Body (pip): These inputs allow users to define the minimum pip threshold for various pairs including XAUUSD, USDJPY, GBPUSD, AUDUSD, USDCAD, EURUSD, NZDUSD, USDCHF, and BTCUSD across M5, M15, and H1 timeframes. Adjusting these values will make the momentum detection more or less sensitive.

FAQ

How do I access Momentum Candle V2?

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

Which timeframes are supported?

The script is optimized for the 5-minute (M5), 15-minute (M15), and 1-hour (H1) timeframes, with specific pip thresholds available for each.

Why do signals only appear near the end of a candle?

The script uses a timing filter to trigger signals only when a candle is close to completion (between 20 and 90 seconds remaining). This reduces noise from temporary price fluctuations and focuses on confirmed momentum.