Range-Filtered Momentum [Indicatr]
Range-Filtered Momentum mutes momentum crossovers during sideways phases and makes price-based momentum comparable across markets by normalising it with ATR. Bullish and bearish crosses are only marked while the market is trending.
WHAT IT DOES
Momentum indicators such as MACD produce many crossovers in ranges, and their values are not comparable between instruments (a MACD of 50 on BTC means something different than on EURUSD). This script filters out range phases and offers an ATR normalisation.
HOW IT WORKS
HOW TO USE
THE CHART
BTCUSD daily with MACD (12/26/9), ATR-normalised, and the ADX filter. Grey shaded areas are range phases in which crosses are suppressed. Triangles mark crosses that occurred while the market was trending.
WHAT IS ORIGINAL
Standard momentum indicators do not distinguish trend from range and are not normalised. This script adds an optional ATR normalisation, a selectable ADX/Choppiness range filter that mutes signals, and one consistent display for seven interchangeable momentum sources.
CREDITS
MACD (Gerald Appel), TSI (William Blau), TRIX (Jack Hutson), Awesome Oscillator (Bill Williams), Elder Ray (Alexander Elder), ADX (J. Welles Wilder), Choppiness Index (E. W. Dreiss). Standard formulas, implemented from scratch.
LIMITATIONS
Disclaimer
For educational and analytical purposes only. Not financial advice. Marks and signals are not buy or sell recommendations. Past behaviour does not guarantee future results.
WHAT IT DOES
Momentum indicators such as MACD produce many crossovers in ranges, and their values are not comparable between instruments (a MACD of 50 on BTC means something different than on EURUSD). This script filters out range phases and offers an ATR normalisation.
HOW IT WORKS
- Momentum source: MACD, TSI, TRIX, Awesome Oscillator, ROC, Momentum or Elder Ray (Bull + Bear Power). A signal line (EMA) and a histogram are derived from it.
- ATR normalisation: price-based sources (MACD, Awesome Oscillator, Momentum, Elder Ray) can be divided by ATR, so values are expressed in ATR units.
- Range filter: ADX above a threshold, Choppiness Index below a threshold, or both, classify a bar as trending.
- Display: during range phases line and histogram turn grey, the background is shaded and no crosses are marked. During trend phases bullish (green) and bearish (red) crosses are marked.
HOW TO USE
- Read crossovers only when the filter says the market is trending - long and short alike.
- Treat grey phases as a reminder that crossovers carry little information in sideways markets.
- Alerts: bullish cross in trend, bearish cross in trend, start of a trend phase.
THE CHART
BTCUSD daily with MACD (12/26/9), ATR-normalised, and the ADX filter. Grey shaded areas are range phases in which crosses are suppressed. Triangles mark crosses that occurred while the market was trending.
WHAT IS ORIGINAL
Standard momentum indicators do not distinguish trend from range and are not normalised. This script adds an optional ATR normalisation, a selectable ADX/Choppiness range filter that mutes signals, and one consistent display for seven interchangeable momentum sources.
CREDITS
MACD (Gerald Appel), TSI (William Blau), TRIX (Jack Hutson), Awesome Oscillator (Bill Williams), Elder Ray (Alexander Elder), ADX (J. Welles Wilder), Choppiness Index (E. W. Dreiss). Standard formulas, implemented from scratch.
LIMITATIONS
- Filters reduce the number of signals but cannot remove false signals.
- Thresholds (ADX 20, Choppiness 61.8) are defaults, not optimised values.
- Values update on the current bar until it closes.
Disclaimer
For educational and analytical purposes only. Not financial advice. Marks and signals are not buy or sell recommendations. Past behaviour does not guarantee future results.
Indicatr - the indicators you know, rebuilt with market context: volume, trend and momentum, for long and short. Free open-source tools and Pro tools. Guides and setups: indicator.trading/en/link
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน
Indicatr - the indicators you know, rebuilt with market context: volume, trend and momentum, for long and short. Free open-source tools and Pro tools. Guides and setups: indicator.trading/en/link
คำจำกัดสิทธิ์ความรับผิดชอบ
ข้อมูลและบทความไม่ได้มีวัตถุประสงค์เพื่อก่อให้เกิดกิจกรรมทางการเงิน, การลงทุน, การซื้อขาย, ข้อเสนอแนะ หรือคำแนะนำประเภทอื่น ๆ ที่ให้หรือรับรองโดย TradingView อ่านเพิ่มเติมใน ข้อกำหนดการใช้งาน