Flow Momentum Composite█ OVERVIEW
Flow Momentum Composite is a modular momentum analysis indicator designed to assess the direction and strength of market movement by combining several complementary elements of price analysis, flow pressure, market structure and historical behaviour.
Most momentum indicators answer only one question. A classic oscillator shows whether momentum is bullish or bearish. A trend indicator defines the broader market direction but may react with a lag. Divergences can point to weakening momentum, while analysis of historical similarities can provide additional information about the probable direction of the next move. Each of these approaches is valuable, but each presents only a fragment of the market picture.
Flow Momentum Composite was designed as a modular system that brings these different perspectives into one coherent framework. The indicator analyses Momentum Core, Balance Line, Flow Pressure, Structure / Trend, KNN Bias and Tension Waves, then combines their readings inside the Composite Score.
The main idea of the indicator is not to rely on a single signal, but to check whether several independent components point in the same direction. The user can control the importance of each element through individual weights, so the final assessment can be adapted to their own analysis style.
The Composite Score is calculated and displayed exclusively relative to the direction of the current candle. Points from individual modules are awarded only when that component agrees with the candle’s colour (bullish candle + bullish components, or bearish candle + bearish components). A high reading therefore represents strong agreement of the components with the current candle’s direction, not an independent oscillator ranging from strong bearish to strong bullish.
The indicator also includes additional analytical layers such as contrarian signals, divergences between price and momentum, and the Signal Confluence Barometer. These elements provide extra context and help distinguish strong directional conditions, weakening momentum and potential turning points.
The result is a multi-dimensional momentum analysis tool that moves from short-term evaluation of price movement and flow pressure, through market structure and historical similarity of conditions, to a final assessment of component agreement.
█ CONCEPTS
Momentum Core
Momentum Core is the main module of the indicator and is responsible for measuring the current strength and direction of price movement.
Instead of using price change alone, the calculation compares the change of the selected price series with ATR, so that momentum is normalised to current market volatility. The result is rescaled to the 0–100 range, where the 50 level represents the central equilibrium.
Momentum Core primarily answers the question:
Is current price momentum bullish or bearish, and how strong is it?
Balance Line
Balance Line uses the same basic momentum measurement concept as Momentum Core, but has its own calculation period and typically slower smoothing.
Its purpose is not to duplicate Momentum Core, but to create a slower reference point against which current momentum can be compared. The relationship between the two lines forms the basis of the Tension Waves module.
Balance Line answers the question:
How does current momentum relate to the slower, underlying market momentum?
Flow Pressure
Flow Pressure analyses directional market pressure using available volume or candle structure when real volume is not available.
The result is summed over a defined period and then smoothed. The visual Flow Pressure wave additionally changes intensity at extreme values.
Flow Pressure answers the question:
Does current market pressure support buyers or sellers?
Structure / Trend
Structure / Trend defines the broader market direction and provides context for short-term momentum changes.
The module uses an EMA-based basis and an ATR-dependent band. A trend direction change occurs only when price breaks the corresponding side of the band.
Structure / Trend answers the question:
What is the current broader market direction?
KNN Bias
KNN Bias uses analysis of historical market condition similarity. It compares the current state (Momentum Core, Flow Pressure, Structure / Trend) with previously stored observations and, based on the subsequent price behaviour, creates a weighted directional vote.
KNN Bias answers the question:
What happened in the past when market conditions looked similar to the present ones?
Tension Waves
Tension Waves visually represent the difference between Momentum Core and Balance Line. The greater the distance, the deeper the histogram. Deepening of the wave in the same direction is particularly important and is used by both the Composite Score and the Signal Confluence Barometer.
Tension Waves answer the question:
Is the difference between current and baseline momentum increasing?
Composite Score
Composite Score is the central element of the entire indicator. It combines five independent components: Momentum Core, Flow Pressure, Structure / Trend, KNN Bias and Tension Waves.
Each component has its own weight. Points are awarded only when the direction of a given component agrees with the colour of the current candle and additional conditions are met (for example Core continuing further in its direction, or the Tension Wave deepening).
The result is presented as a percentage of the maximum possible points. BUY/SELL signals appear only after the defined threshold is exceeded.
Composite Score answers the question:
Do the individual analysis elements jointly confirm the direction of the current candle?
Signal Confluence Barometer
Shows how many of the five components currently confirm the dominant direction (without using weights).
Signal Confluence Barometer answers the question:
How many independent elements of the indicator currently confirm the same direction?
Contrarian Signals
Appear when Momentum Core returns from an extreme Oversold or Overbought level.
They serve to identify potential direction changes after an extreme has been reached.
Divergences
Compare price behaviour with Momentum Core. A bullish divergence forms when price makes a lower low while Core makes a higher low; a bearish divergence forms when price makes a higher high while Core makes a lower high.
They serve a warning and contextual function.
Overbought / Oversold Zones
Provide reference levels for Momentum Core. They feature dynamic transparency that depends on the distance of Core from the given level.
█ FEATURES
Momentum Core
• Source – price series used for Momentum Core and Balance Line calculations.
• Length – number of bars used to measure price change relative to ATR.
• Smoothing – smoothing period applied to Momentum Core.
• MA Method – averaging method (EMA / SMA / RMA) used across all modules.
• Scaling Sensitivity – the higher the value, the faster Core reaches the 0/100 extremes at the same volatility.
Balance Line
• Length – calculation period of the Balance Line.
• Smoothing – smoothing of the Balance Line (typically higher than Core to increase distance during trends).
Flow Pressure
• Length – number of bars summed when calculating Flow Pressure.
• Smoothing – smoothing of the Flow Pressure line.
• Force candle mode instead of volume – forces calculation from candle range even when the instrument has real volume data.
• Flow Wave Height Scale – controls the height of the Flow Pressure wave above the OB line or below the OS line.
• Flow Extreme Threshold – threshold above which the Flow Pressure wave switches to a darker shade (extreme pressure).
KNN Bias
• Number of Neighbors (K) – number of nearest historical observations considered in the KNN vote.
• Memory (bars) – maximum number of stored historical observations used by the classifier.
Structure / Trend
• Trend Base Length – period of the EMA and ATR used to define the structure band.
• Band Multiplier (ATR) – ATR multiplier defining the width of the structure band.
• Color bars by structure trend – colours price chart candles according to the direction of the Structure / Trend module.
Composite Score
• Show Score Signals – enables display of BUY/SELL signals derived from the Composite Score.
• Momentum Weight / Flow Weight / Structure Weight / KNN Weight / Tension Waves Weight – individual weights of the respective components.
• Signal Threshold (% of max score) – minimum percentage of the maximum possible score required to generate a signal.
• One signal per momentum wave – limits signals to one per Momentum Core wave (resets when Core crosses the 50 level).
Tension Waves
• Show Tension Waves – displays the histogram of tension between Momentum Core and Balance Line.
• Tension Wave Transparency – base transparency of the Tension Wave histogram (deepening waves render slightly more opaque).
OB/OS Zones
• Overbought / Oversold – levels considered extreme for Momentum Core.
• Dynamic OB/OS Lines – line transparency depends on the distance of Core from the level.
• OB/OS Transparency — Near Level / Far From Level – transparency settings based on distance.
• OB/OS Line Width – thickness of the Overbought and Oversold lines.
Contrarian Signals
• Show Contrarian Signals – enables signals when Momentum Core returns from an OS/OB extreme.
Divergences
• Show Divergences on Momentum Core – enables detection of divergences between price and Momentum Core.
• Pivot Lookback (left/right) – number of bars required on each side to confirm pivots.
Colors & Transparency
• Bullish Color / Bearish Color / Neutral Color – main colours used across all modules.
• Zero Line Color (50) – colour of the horizontal centre line.
• Text Color (labels) – colour of table header text and divergence label text.
• Flow Wave Transparency – transparency of the Flow Pressure wave fill.
• Transparency: Core→Center Gradient / Core↔Balance Gradient / Divergence Line Transparency – controls fill and line transparency.
Panel
• Show Table – enables the summary table display.
• Position – position of the table on the chart.
• Text Size – text size inside the table.
Alerts
• Score — Buy / Score — Sell
• KNN Direction Change
• Contrarian — Long / Contrarian — Short
• Divergence — Bullish / Divergence — Bearish
• Barometer — Direction Change
█ APPLICATIONS
Assessing the quality and strength of market moves
The primary use of the indicator is to evaluate whether the current price move is confirmed by several independent layers of momentum, flow pressure and structure analysis.
Filtering weak impulses
Composite Score and the Barometer help distinguish moves supported by agreement of most components from moves that have only local, short-lived support.
Detecting strengthening or weakening momentum
Tension Waves show whether the difference between short-term and baseline momentum is increasing. A deepening wave in the direction of the trend can confirm strength, while lack of deepening or a reversal may signal exhaustion.
Confirming trend direction
Simultaneous analysis of Structure / Trend, Momentum Core, Flow Pressure and KNN Bias makes it possible to assess whether the broader market direction is consistent with short-term momentum and historical similarity of conditions.
Identifying potential turning points
Contrarian signals (return from OS/OB) and divergences between price and Momentum Core provide warnings about possible weakening of directional pressure.
Building a custom momentum assessment model
Thanks to the ability to individually weight the five components, the user can create their own assessment model. One trader may place greater emphasis on Momentum Core and Flow Pressure, while another may consider Structure and KNN Bias more important.
█ NOTES
• The divergence module and contrarian signals serve a warning and contextual function. They do not enter the Composite Score directly.
• Composite Score signals are best used as a confirming element of market analysis together with structure, price action, support and resistance zones, and risk management.
• All component weights are fully configurable, allowing the user to adapt the assessment model to their own trading style while retaining the same multi-layered analysis logic.
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