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Momentum Impulse Wave
Momentum Impulse Wave
Momentum Impulse Wave combines volatility-normalised momentum, EMA smoothing, momentum acceleration and closed-bar phase confirmation to show which direction price momentum is moving and whether that movement is strengthening or losing force.
It is designed to support continuation analysis, pullback assessment and recognition of fading momentum.
What’s inside
1. Volatility-normalised momentum
The indicator measures the change in closing price over eight bars and divides it by the sum of True Range over those same eight bars. True Range accounts for each bar’s range and gaps from the previous close.
This measures directional progress relative to the amount of price movement occurring along the way. Positive values indicate upward displacement; negative values indicate downward displacement. Readings are ratios, not percentages or probabilities.
2. Adjustable EMA smoothing
A three-period exponential moving average smooths the momentum reading to form the main wave. Increasing the smoothing length produces a steadier wave with more lag. Reducing it makes the wave more responsive; setting it to one removes smoothing.
3. Momentum acceleration
Acceleration is the difference between the current smoothed momentum reading and its reading three bars earlier. It helps distinguish a move that is gaining force from one that remains directional but is slowing.
For example, positive momentum with negative acceleration indicates that upward momentum is braking. It does not mean momentum has already turned bearish.
4. Momentum and acceleration deadbands
Two separate thresholds prevent every small fluctuation from being classified as a directional phase:
- Momentum deadband: ±0.03 by default.
- Acceleration deadband: ±0.01 by default.
Both momentum and acceleration must exceed their respective thresholds to qualify for a directional phase. The additional ±0.10 wave emphasis boundary is a visual reference only; it does not change phase confirmation or filter alerts.
5. Closed-bar phase confirmation
By default, the same candidate phase must occur on two consecutive completed bars before it is confirmed. This applies to Neutral as well as directional phases.
The wave publishes completed-bar readings, and the panel retains the latest closed-bar observation. While a new phase is pending, the panel continues to identify the previous confirmed phase.
The five phases
- Positive strengthening: momentum above +0.03 and acceleration above +0.01.
- Positive braking: momentum above +0.03 and acceleration below −0.01.
- Negative strengthening: momentum below −0.03 and acceleration below −0.01.
- Negative braking: momentum below −0.03 and acceleration above +0.01.
- Neutral: valid readings that do not meet any of those four combinations.
Neutral does not necessarily mean sideways price action. Directional momentum can remain present while acceleration is too small to qualify.
Trading applications
Use the wave alongside price structure, trend direction and key levels:
- Continuation: strengthening momentum can support a setup when price structure agrees with the direction.
- Pullbacks: braking can help identify reduced directional pressure as a move pauses or retraces.
- Momentum recovery: renewed strengthening after a pullback can help assess whether the original direction is regaining force.
- Breakout assessment: expanding momentum can provide context for follow-through, but neither a zero crossing nor a threshold crossing proves that a breakout will hold.
Panel and alerts
The panel displays the confirmed phase, smoothed momentum, acceleration, phase age, pending confirmation progress and the latest completed-bar timestamp.
Optional alerts identify confirmed phase changes. You can select individual phases or receive all confirmed changes. Optional candle colouring and a raw, unsmoothed momentum trace are also included.
Momentum Impulse Wave measures price momentum and its change; it does not predict price or provide standalone buy and sell signals. Acceleration is derived from momentum, so it is not an independent confirmation source. Strong readings do not establish overbought or oversold conditions, and braking does not guarantee a reversal.
Momentum Impulse Wave combines volatility-normalised momentum, EMA smoothing, momentum acceleration and closed-bar phase confirmation to show which direction price momentum is moving and whether that movement is strengthening or losing force.
It is designed to support continuation analysis, pullback assessment and recognition of fading momentum.
What’s inside
1. Volatility-normalised momentum
The indicator measures the change in closing price over eight bars and divides it by the sum of True Range over those same eight bars. True Range accounts for each bar’s range and gaps from the previous close.
This measures directional progress relative to the amount of price movement occurring along the way. Positive values indicate upward displacement; negative values indicate downward displacement. Readings are ratios, not percentages or probabilities.
2. Adjustable EMA smoothing
A three-period exponential moving average smooths the momentum reading to form the main wave. Increasing the smoothing length produces a steadier wave with more lag. Reducing it makes the wave more responsive; setting it to one removes smoothing.
3. Momentum acceleration
Acceleration is the difference between the current smoothed momentum reading and its reading three bars earlier. It helps distinguish a move that is gaining force from one that remains directional but is slowing.
For example, positive momentum with negative acceleration indicates that upward momentum is braking. It does not mean momentum has already turned bearish.
4. Momentum and acceleration deadbands
Two separate thresholds prevent every small fluctuation from being classified as a directional phase:
- Momentum deadband: ±0.03 by default.
- Acceleration deadband: ±0.01 by default.
Both momentum and acceleration must exceed their respective thresholds to qualify for a directional phase. The additional ±0.10 wave emphasis boundary is a visual reference only; it does not change phase confirmation or filter alerts.
5. Closed-bar phase confirmation
By default, the same candidate phase must occur on two consecutive completed bars before it is confirmed. This applies to Neutral as well as directional phases.
The wave publishes completed-bar readings, and the panel retains the latest closed-bar observation. While a new phase is pending, the panel continues to identify the previous confirmed phase.
The five phases
- Positive strengthening: momentum above +0.03 and acceleration above +0.01.
- Positive braking: momentum above +0.03 and acceleration below −0.01.
- Negative strengthening: momentum below −0.03 and acceleration below −0.01.
- Negative braking: momentum below −0.03 and acceleration above +0.01.
- Neutral: valid readings that do not meet any of those four combinations.
Neutral does not necessarily mean sideways price action. Directional momentum can remain present while acceleration is too small to qualify.
Trading applications
Use the wave alongside price structure, trend direction and key levels:
- Continuation: strengthening momentum can support a setup when price structure agrees with the direction.
- Pullbacks: braking can help identify reduced directional pressure as a move pauses or retraces.
- Momentum recovery: renewed strengthening after a pullback can help assess whether the original direction is regaining force.
- Breakout assessment: expanding momentum can provide context for follow-through, but neither a zero crossing nor a threshold crossing proves that a breakout will hold.
Panel and alerts
The panel displays the confirmed phase, smoothed momentum, acceleration, phase age, pending confirmation progress and the latest completed-bar timestamp.
Optional alerts identify confirmed phase changes. You can select individual phases or receive all confirmed changes. Optional candle colouring and a raw, unsmoothed momentum trace are also included.
Momentum Impulse Wave measures price momentum and its change; it does not predict price or provide standalone buy and sell signals. Acceleration is derived from momentum, so it is not an independent confirmation source. Strong readings do not establish overbought or oversold conditions, and braking does not guarantee a reversal.
סקריפט קוד פתוח
ברוח האמיתית של TradingView, יוצר הסקריפט הזה הפך אותו לקוד פתוח, כך שסוחרים יוכלו לעיין בו ולאמת את פעולתו. כל הכבוד למחבר! אמנם ניתן להשתמש בו בחינם, אך זכור כי פרסום חוזר של הקוד כפוף ל־כללי הבית שלנו.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.
סקריפט קוד פתוח
ברוח האמיתית של TradingView, יוצר הסקריפט הזה הפך אותו לקוד פתוח, כך שסוחרים יוכלו לעיין בו ולאמת את פעולתו. כל הכבוד למחבר! אמנם ניתן להשתמש בו בחינם, אך זכור כי פרסום חוזר של הקוד כפוף ל־כללי הבית שלנו.
כתב ויתור
המידע והפרסומים אינם מיועדים להיות, ואינם מהווים, ייעוץ או המלצה פיננסית, השקעתית, מסחרית או מכל סוג אחר המסופקת או מאושרת על ידי TradingView. קרא עוד ב־תנאי השימוש.