OPEN-SOURCE SCRIPT
Momentum Trend Strength (MTS)
Trading Methodology
1. Zero-Line (0) Crossover Trading (Core Trend Following)
This is the most standard method to capture trend reversals based on the zero-line.
Buy (Long): Enter when the MTS line crosses above the zero-line from below (signals the start of an uptrend).
Sell (Short): Enter when the MTS line crosses below the zero-line from above (signals the start of a downtrend).
2. Histogram Color Change Trading (Short-Term Entries & Profit-Taking)
This method utilizes color changes driven by the indicator's slope (comparing the current value to the previous value).
Entry Points:
When the indicator turns from light green (stalled upward momentum) back to dark green (accelerating upward momentum) above the zero-line, buy the pullback.
Exit (Take-Profit) Points:
For long positions: Exit when the color changes from dark green to light green (fading upward momentum).
For short positions: Exit when the color changes from dark red to orange (fading downward momentum).
3. Detecting Divergence (Trend Reversal)
This captures powerful reversal entries when price and indicator movements move in opposite directions.
Bullish Divergence (Buy): Occurs when the price makes a lower low, but the MTS indicator makes a higher low (indicates selling pressure is exhausted, prepare to buy).
Bearish Divergence (Sell): Occurs when the price makes a higher high, but the MTS indicator makes a lower high (indicates buying pressure is exhausted, prepare to sell).
4. Improving Win Rate via Filtering (Recommended)
Since MTS is a momentum-based indicator, it can generate frequent false signals (whipsaws) in sideways markets. To prevent this, adding a 200 EMA (Exponential Moving Average) to your chart is highly recommended.
When the price is above the 200 EMA, only take zero-line upside breakthroughs (Long entries).
When the price is below the 200 EMA, only take zero-line downside breakthroughs (Short entries).
1. Zero-Line (0) Crossover Trading (Core Trend Following)
This is the most standard method to capture trend reversals based on the zero-line.
Buy (Long): Enter when the MTS line crosses above the zero-line from below (signals the start of an uptrend).
Sell (Short): Enter when the MTS line crosses below the zero-line from above (signals the start of a downtrend).
2. Histogram Color Change Trading (Short-Term Entries & Profit-Taking)
This method utilizes color changes driven by the indicator's slope (comparing the current value to the previous value).
Entry Points:
When the indicator turns from light green (stalled upward momentum) back to dark green (accelerating upward momentum) above the zero-line, buy the pullback.
Exit (Take-Profit) Points:
For long positions: Exit when the color changes from dark green to light green (fading upward momentum).
For short positions: Exit when the color changes from dark red to orange (fading downward momentum).
3. Detecting Divergence (Trend Reversal)
This captures powerful reversal entries when price and indicator movements move in opposite directions.
Bullish Divergence (Buy): Occurs when the price makes a lower low, but the MTS indicator makes a higher low (indicates selling pressure is exhausted, prepare to buy).
Bearish Divergence (Sell): Occurs when the price makes a higher high, but the MTS indicator makes a lower high (indicates buying pressure is exhausted, prepare to sell).
4. Improving Win Rate via Filtering (Recommended)
Since MTS is a momentum-based indicator, it can generate frequent false signals (whipsaws) in sideways markets. To prevent this, adding a 200 EMA (Exponential Moving Average) to your chart is highly recommended.
When the price is above the 200 EMA, only take zero-line upside breakthroughs (Long entries).
When the price is below the 200 EMA, only take zero-line downside breakthroughs (Short entries).
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.
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.