OPEN-SOURCE SCRIPT
Momentum Weighted Bands | NAL
1. Overview
Momentum Weighted Bands | NAL is an adaptive trend indicator utilizing volatility bands that follow momentum. Instead of using one fixed band multiplier at all times, it studies the current momentum environment and adjusts the bands tightness dynamically.
2. Calculation
The indicator starts by calculating RSI as its momentum engine. It then subtracts an EMA of that RSI to create a momentum residual, showing whether momentum is stronger or weaker than its own recent average.
That residual is ranked using percent rank. The stronger the momentum residual is compared to recent history, the more the band multiplier shifts between the minimum and maximum values.
The final bands are built as:
Pine Script®
A bullish state triggers when price closes above the upper band. A bearish state triggers when price closes below the lower band.
3. Key Features
4. Use
Use it to quickly identify when price is escaping its normal momentum-adjusted range. Above the upper band suggests bullish expansion, below the lower band suggests bearish expansion, and movement inside the bands means price has not yet confirmed a new directional regime.
Momentum Weighted Bands | NAL is an adaptive trend indicator utilizing volatility bands that follow momentum. Instead of using one fixed band multiplier at all times, it studies the current momentum environment and adjusts the bands tightness dynamically.
2. Calculation
The indicator starts by calculating RSI as its momentum engine. It then subtracts an EMA of that RSI to create a momentum residual, showing whether momentum is stronger or weaker than its own recent average.
That residual is ranked using percent rank. The stronger the momentum residual is compared to recent history, the more the band multiplier shifts between the minimum and maximum values.
The final bands are built as:
A bullish state triggers when price closes above the upper band. A bearish state triggers when price closes below the lower band.
3. Key Features
- Volatility bands adaptive to momentum conditions.
- Filters noise through confluence.
- Clean trend-state visualization with visual options.
4. Use
Use it to quickly identify when price is escaping its normal momentum-adjusted range. Above the upper band suggests bullish expansion, below the lower band suggests bearish expansion, and movement inside the bands means price has not yet confirmed a new directional regime.
Script de código abierto
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Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que cualquier republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.