OPEN-SOURCE SCRIPT
BFAS76 Charts - Hybrid Momentum Index
BFAS76 Charts - Hybrid Momentum Index
OVERVIEW
Hybrid Momentum Index combines two complementary momentum measurement systems into a single oscillator panel: a Laguerre filtered PPO Percentile Rank and a DMI-based Stochastic. This dual approach provides both trend momentum strength and directional movement confirmation, with multi timeframe channel detection for context.
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COMPONENTS
1. PERCENTILE RANK LINE (Red)
Based on Laguerre smoothed PPO (Percentage Price Oscillator), converted to a percentile rank over a lookback period. Shows where current momentum stands relative to historical momentum readings.
2. DMI STOCHASTIC LINE (Blue)
Stochastic oscillator applied to the DMI oscillator (Plus DI minus Minus DI). Measures the directional movement strength in stochastic terms, identifying overbought/oversold conditions in trend strength.
3. MTF CHANNEL BACKGROUND
Background coloring based on higher timeframe high/low channel, providing visual context for when price is at channel extremes.
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HOW IT WORKS
LAGUERRE PPO PERCENTILE RANK
- Laguerre filter smooths price data with minimal lag
- PPO calculated from fast and slow Laguerre values
- Result converted to percentile rank (0-100)
- High readings (>90) indicate momentum at historical highs
- Low readings indicate weak momentum relative to history
DMI STOCHASTIC
- Calculates Plus DI and Minus DI using Welles Wilder method
- DMI oscillator = Plus DI - Minus DI
- Stochastic applied to DMI oscillator
- Crosses above oversold (15) = potential long signal
- Crosses below overbought (85) = potential short signal
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SIGNAL ARROWS
- Blue Triangle Up: DMI Stochastic crosses above oversold level (bullish)
- White Triangle Down: DMI Stochastic crosses below overbought level (bearish)
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REFERENCE LEVELS
- 80 Line (Red): Overbought zone boundary
- 20 Line (Green): Oversold zone boundary
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SETTINGS
Percentile Rank Parameters:
- Over_Bought: Upper percentile threshold (default: 90)
- Over_Sold: Lower percentile threshold (default: 70)
- LONG: Laguerre gamma for fast line (default: 0.3)
- SHORT: Laguerre gamma for slow line (default: 0.5)
- PRO-Top/Bottom: Lookback period for percentile calculation (default: 250)
DMI Stochastic Parameters:
- DMI: DMI calculation length (default: 10)
- DMI Stoch: Stochastic length applied to DMI (default: 6)
- OS %: Oversold threshold (default: 15)
- OB %: Overbought threshold (default: 85)
MTF Channel:
- Small Channel TF: Timeframe for high/low channel (default: 720 minutes)
- Range: Lookback for channel extremes (default: 1)
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INTERPRETATION
BULLISH CONDITIONS
- DMI Stochastic crossing above oversold (arrow signal)
- Percentile Rank rising from low levels
- Background showing price at lower channel extreme
BEARISH CONDITIONS
- DMI Stochastic crossing below overbought (arrow signal)
- Percentile Rank falling from high levels
- Background showing price at upper channel extreme
STRONGEST SIGNALS
- Both lines confirming the same direction
- Signals occurring at MTF channel extremes
═══════════════════════════════════════════
CREDITS
This indicator builds upon open source work from the TradingView community:
- VDUBUS: Original concept creator of "BinaryPro 2" indicator
- THELARK (Chris Moody): Laguerre filter implementation and PPO percentile rank code
The Stoch_VX2 script that combined these concepts served as the foundation for the percentile rank component of this indicator.
BFAS76 modifications and additions:
- DMI Stochastic system (original)
- Multi-timeframe channel background (original)
- Signal arrow system (original)
- Visual refinements and parameter optimization
- Code conversion to Pine Script v5
- Integration into unified hybrid momentum panel
═══════════════════════════════════════════
ORIGINALITY STATEMENT
This indicator combines adapted open-source code with original development by BFAS76.
CREDITED CODE:
- Vdubus: BinaryPro 2 concept and indicator design
- TheLark (Chris Moody): Laguerre filter function, PPO calculation, percentile rank logic
ORIGINAL CODE BY BFAS76:
- DMI Stochastic calculation and integration
- Multi-timeframe channel detection system
- Signal arrow logic (OS/OB crosses)
- Background coloring system
- Pine Script v5 conversion with proper variable scoping
- Combined dual-oscillator panel design
The integration of these components into a unified hybrid momentum system, along with the DMI Stochastic and MTF features, represents original work by BFAS76.
═══════════════════════════════════════════
DISCLAIMER
This indicator is for educational and informational purposes only. It does not constitute financial advice. Oscillator signals should be confirmed with price action and other analysis methods. Always use proper risk management.
OVERVIEW
Hybrid Momentum Index combines two complementary momentum measurement systems into a single oscillator panel: a Laguerre filtered PPO Percentile Rank and a DMI-based Stochastic. This dual approach provides both trend momentum strength and directional movement confirmation, with multi timeframe channel detection for context.
═══════════════════════════════════════════
COMPONENTS
1. PERCENTILE RANK LINE (Red)
Based on Laguerre smoothed PPO (Percentage Price Oscillator), converted to a percentile rank over a lookback period. Shows where current momentum stands relative to historical momentum readings.
2. DMI STOCHASTIC LINE (Blue)
Stochastic oscillator applied to the DMI oscillator (Plus DI minus Minus DI). Measures the directional movement strength in stochastic terms, identifying overbought/oversold conditions in trend strength.
3. MTF CHANNEL BACKGROUND
Background coloring based on higher timeframe high/low channel, providing visual context for when price is at channel extremes.
═══════════════════════════════════════════
HOW IT WORKS
LAGUERRE PPO PERCENTILE RANK
- Laguerre filter smooths price data with minimal lag
- PPO calculated from fast and slow Laguerre values
- Result converted to percentile rank (0-100)
- High readings (>90) indicate momentum at historical highs
- Low readings indicate weak momentum relative to history
DMI STOCHASTIC
- Calculates Plus DI and Minus DI using Welles Wilder method
- DMI oscillator = Plus DI - Minus DI
- Stochastic applied to DMI oscillator
- Crosses above oversold (15) = potential long signal
- Crosses below overbought (85) = potential short signal
═══════════════════════════════════════════
SIGNAL ARROWS
- Blue Triangle Up: DMI Stochastic crosses above oversold level (bullish)
- White Triangle Down: DMI Stochastic crosses below overbought level (bearish)
═══════════════════════════════════════════
REFERENCE LEVELS
- 80 Line (Red): Overbought zone boundary
- 20 Line (Green): Oversold zone boundary
═══════════════════════════════════════════
SETTINGS
Percentile Rank Parameters:
- Over_Bought: Upper percentile threshold (default: 90)
- Over_Sold: Lower percentile threshold (default: 70)
- LONG: Laguerre gamma for fast line (default: 0.3)
- SHORT: Laguerre gamma for slow line (default: 0.5)
- PRO-Top/Bottom: Lookback period for percentile calculation (default: 250)
DMI Stochastic Parameters:
- DMI: DMI calculation length (default: 10)
- DMI Stoch: Stochastic length applied to DMI (default: 6)
- OS %: Oversold threshold (default: 15)
- OB %: Overbought threshold (default: 85)
MTF Channel:
- Small Channel TF: Timeframe for high/low channel (default: 720 minutes)
- Range: Lookback for channel extremes (default: 1)
═══════════════════════════════════════════
INTERPRETATION
BULLISH CONDITIONS
- DMI Stochastic crossing above oversold (arrow signal)
- Percentile Rank rising from low levels
- Background showing price at lower channel extreme
BEARISH CONDITIONS
- DMI Stochastic crossing below overbought (arrow signal)
- Percentile Rank falling from high levels
- Background showing price at upper channel extreme
STRONGEST SIGNALS
- Both lines confirming the same direction
- Signals occurring at MTF channel extremes
═══════════════════════════════════════════
CREDITS
This indicator builds upon open source work from the TradingView community:
- VDUBUS: Original concept creator of "BinaryPro 2" indicator
- THELARK (Chris Moody): Laguerre filter implementation and PPO percentile rank code
The Stoch_VX2 script that combined these concepts served as the foundation for the percentile rank component of this indicator.
BFAS76 modifications and additions:
- DMI Stochastic system (original)
- Multi-timeframe channel background (original)
- Signal arrow system (original)
- Visual refinements and parameter optimization
- Code conversion to Pine Script v5
- Integration into unified hybrid momentum panel
═══════════════════════════════════════════
ORIGINALITY STATEMENT
This indicator combines adapted open-source code with original development by BFAS76.
CREDITED CODE:
- Vdubus: BinaryPro 2 concept and indicator design
- TheLark (Chris Moody): Laguerre filter function, PPO calculation, percentile rank logic
ORIGINAL CODE BY BFAS76:
- DMI Stochastic calculation and integration
- Multi-timeframe channel detection system
- Signal arrow logic (OS/OB crosses)
- Background coloring system
- Pine Script v5 conversion with proper variable scoping
- Combined dual-oscillator panel design
The integration of these components into a unified hybrid momentum system, along with the DMI Stochastic and MTF features, represents original work by BFAS76.
═══════════════════════════════════════════
DISCLAIMER
This indicator is for educational and informational purposes only. It does not constitute financial advice. Oscillator signals should be confirmed with price action and other analysis methods. Always use proper risk management.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.
Script open-source
Nello spirito di TradingView, l'autore di questo script lo ha reso open source, in modo che i trader possano esaminarne e verificarne la funzionalità. Complimenti all'autore! Sebbene sia possibile utilizzarlo gratuitamente, ricordiamo che la ripubblicazione del codice è soggetta al nostro Regolamento.
Declinazione di responsabilità
Le informazioni e le pubblicazioni non sono intese come, e non costituiscono, consulenza o raccomandazioni finanziarie, di investimento, di trading o di altro tipo fornite o approvate da TradingView. Per ulteriori informazioni, consultare i Termini di utilizzo.