Hash Momentum Indicator

The Hash Momentum Indicator tool provides real-time momentum-based signals with visual entry/exit markers and automated risk management levels to capture price acceleration.

Usage

The Usage section focuses on identifying high-probability momentum shifts. Users can follow the visual cues provided on the chart:

• Long Entry: Indicated by a tiny green dot below the bar.
• Short Entry: Indicated by a tiny red dot above the bar.
• Exit Points: Represented by a blue X (Long Exit) or orange X (Short Exit).

The tool automatically draws risk management lines upon a signal:

• White Dashed Line: Entry level.
• Red Line: Stop loss level.
• Green Line: Final take profit target.
• Dotted Green Lines: Partial take profit levels (if enabled).

Traders can refine signals by enabling the EMA trend filter to ensure they only trade in the direction of the long-term trend or use the session filters to restrict trading to high-liquidity periods like the New York or London sessions.

Details

The Hash Momentum Indicator is constructed using a normalized momentum calculation. It measures the difference between the current price and the price N bars ago, then normalizes this value by the standard deviation to maintain consistency across different timeframes and assets.

A signal is triggered when:

1. Momentum exceeds a dynamic threshold based on the Average True Range (ATR).
2. Momentum change is positive (for longs) or negative (for shorts), confirming acceleration.
3. Optional filters (Trend, Session, Weekend, and Cooldown) are satisfied.

The tool includes a "Trade Cooldown" feature, which prevents overtrading by enforcing a minimum number of bars between consecutive signals.

Settings

Core Strategy

• Momentum Length: The number of bars used for the momentum calculation. Higher values result in stronger but fewer signals.
• Momentum Threshold (ATR Multiplier): Sets the sensitivity of the signal generation. Higher values require more significant price acceleration.
• Use EMA Trend Filter: When enabled, longs are only allowed above the EMA and shorts below it.
• EMA Length: The lookback period for the trend reference line.

Filters

• Use Trading Session Filter: Limits signal generation to specific hours (Tokyo, London, or New York).
• Weekend Off: Disables signals during Saturday and Sunday to avoid low-liquidity gaps.

Risk Management

• Stop Loss %: A fixed percentage distance from the entry price used to set the stop loss.
• Risk:Reward Ratio: Determines the final take profit target relative to the risk.
• Use Partial Profit Taking: Enables additional target lines (TP1 and TP2) to lock in gains at specific R:R stages.

Trade Management

• Use Trade Cooldown: Enables a waiting period between trades.
• Cooldown Bars: The specific number of bars required before a new signal can be generated.

FAQ

How do I access Hash Momentum Indicator?

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

Can I use this for automated trading?

Yes, the script includes alert conditions for Long/Short entries, exits, and partial take profit hits which can be connected to external execution bridges.

What timeframes work best with this indicator?

While it functions on all timeframes, momentum-based strategies typically perform more consistently on intervals where price trends are more established, such as the 15m, 1h, or 4h charts.