Adaptive Momentum Velocity Ribbon

The Adaptive Momentum Velocity Ribbon indicator provides a comprehensive trend-following environment by analyzing the velocity and acceleration of three Hull Moving Averages (HMA). It aims to help traders visualize trend strength, momentum shifts, and multi-timeframe alignment through a dynamic gradient ribbon and a specialized status dashboard.

Usage

The Usage section describes how the script can be used to identify market conditions and potential entry points.

• Trend Identification: Use the three HMA lines to determine the primary trend direction. When the "Fast HMA" is above the "Slow HMA" and the ribbon is colored with the Bullish theme, an uptrend is signaled.
• Momentum Acceleration: Observe the color saturation of the ribbon. Brighter, more saturated colors indicate that momentum is accelerating in the direction of the trend, while dimmer colors suggest momentum is fading or "decelerating."
• Alignment Squares: At the bottom of the chart, colored squares appear when all three HMAs are moving in the same direction. The color deepens the longer this alignment persists, signifying a mature and strong trend.
• Glow Signals: Diamond shapes represent velocity crossovers. A bullish glow appears when the fast momentum crosses the signal threshold upward, potentially indicating a long entry opportunity.
• Multi-Timeframe Analysis: Utilize the dashboard to see if the current chart's momentum aligns with higher timeframes (1H and 4H). Conflicting signals across timeframes can indicate a period of consolidation or a potential reversal.

Details

The indicator is built upon a triple Hull Moving Average (HMA) engine, chosen for its reduced lag compared to standard moving averages. It calculates two primary derivatives for each HMA:

1. Velocity: The slope of the HMA over a specified lookback period.
2. Acceleration: The rate of change of the velocity itself.

By comparing velocity and acceleration, the script determines whether a trend is expanding or exhausting. The "Gradient Ribbon" logic uses the spread between the HMAs, normalized against a 100-bar high, to adjust the transparency of the fill. This creates a "heat map" effect where wider spreads result in more vibrant colors.

Settings

HMA Engine

• Fast HMA Length: The lookback for the quickest HMA, used for immediate trend response.
• Mid HMA Length: Balances responsiveness and smoothness for the intermediate trend.
• Slow HMA Length: Acts as the anchor for the major trend direction.

Velocity

• Velocity Lookback: The number of bars used to measure the slope of the HMAs.
• Signal Threshold: The minimum value required for the Fast HMA velocity to trigger a glow signal.

Visuals

• Show Glow Signals: Toggles the diamond crossover markers.
• Show Gradient Ribbon: Toggles the fill between the HMA lines.
• Show Alignment Squares: Toggles the trend alignment status at the bottom of the chart.
• Show MTF Dashboard: Toggles the multi-timeframe status table.

FAQ

How do I interpret the colors on the ribbon? Bright colors (Teal/Red) indicate that the price is both moving in a direction and accelerating. Dimmer colors indicate that while the trend direction remains, the rate of change is slowing down.

What do the squares at the bottom of the chart mean? They represent "Alignment." When all three HMAs (Fast, Mid, and Slow) have velocities moving in the same direction, a square appears. If the trend persists, the square becomes more opaque.

How can I access Adaptive Momentum Velocity Ribbon? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.