Stockan Momentum MeterStockan Momentum Meter (SMM)
Advanced Momentum Acceleration Oscillator
Version: 1.0 | Category: Momentum Oscillator | Type: Open Source
Detailed Technical Specification
Key Features
Dual-Layer Momentum Calculation
Calculates momentum using double derivative of price (ROC of ROC)
First Layer: Standard Rate of Change (ROC)
Second Layer: Momentum of Momentum (ROC applied to first ROC)
Signal Smoothing System
EMA filtering of raw momentum values
Adaptive smoothing based on user-defined length
4-State Color Coding
Quadrant-based visualization system:
Strong Bullish (Green): Histogram > Threshold
Moderate Bullish (Blue): 0 < Histogram ≤ Threshold
Moderate Bearish (Orange): -Threshold ≤ Histogram < 0
Strong Bearish (Red): Histogram < -Threshold
Dynamic Threshold System
Adjustable baseline levels for sensitivity control
Symmetrical upper/lower boundaries
Detailed Working Mechanism
Calculation Pipeline
Raw Momentum (momo):
momo = ROC(ROC(close, length), length)
Measures acceleration/deceleration in price movements
Double derivation filters out noise while capturing momentum shifts
Smoothed Signal (ema_momo):
ema_momo = EMA(momo, length)
Creates reference line for momentum comparison
Reduces whipsaws in volatile markets
Histogram Value:
histogram = momo - ema_momo
Visualizes difference between raw and smoothed momentum
Positive values = accelerating momentum
Negative values = decelerating momentum
PARAMETER CONFIGURATION
Momentum Length (Default: 14)
Range: 1-100 | Controls historical window for momentum calculations
Base Line Threshold (Default: 0.0)
Range: 0-100 | Determines sensitivity for color changes
COLOR CODING SYSTEM
GREEN Signals:
Histogram value ABOVE threshold level = Strong bullish momentum
BLUE Signals:
Positive values BETWEEN 0 and threshold = Moderate bullish pressure
ORANGE Signals:
Negative values BETWEEN 0 and -threshold = Moderate bearish pressure
RED Signals:
Histogram value BELOW -threshold = Strong bearish momentum
Key Benefits for Traders
Early Reversal Detection
Identifies momentum exhaustion before price reversal occurs
Divergence Spotting
Clear visualization of:
Bullish divergence (Price ↓ + Histogram ↑)
Bearish divergence (Price ↑ + Histogram ↓)
Trend Strength Measurement
Histogram height indicates momentum intensity
Multi-Timeframe Compatibility
Works effectively on:
Scalping (1-15min)
Swing Trading (1H-4H)
Position Trading (Daily-Weekly)
Customizable Sensitivity
Adjust threshold levels for:
Day traders (higher threshold = fewer signals)
Long-term investors (lower threshold = more sensitivity)
Usage Scenarios
Bullish Signal
Green histogram crossing above threshold
Blue → Green color transition
Bearish Signal
Red histogram crossing below negative threshold
Orange → Red color transition
Confirmation Tool
Use with trend indicators (EMA, MACD):
Green histogram + Price above 200 EMA = Strong uptrend
Red histogram + Price below 200 EMA = Strong downtrend
KEY ADVANTAGES OVER POPULAR INDICATORS
Faster Signals vs RSI
Detects momentum shifts earlier through double ROC calculation
Clearer Visuals vs MACD
Four-color system replaces confusing line crossovers with instant visual cues
Better Filtering vs Stochastic
Dual-layer calculation reduces market noise more effectively
Custom Sensitivity
Adjustable threshold outperforms fixed settings in traditional oscillators
How to Use
Add to chart from TradingView Public Library
Default settings work for most timeframes
Adjust parameters based on:
Aggressive trading: Reduce length (10-12)
Conservative trading: Increase length (20-25)
Combine with:
Trendlines for breakout confirmation
Volume indicators for signal validation
Notes
Best Performance: Ranging markets with clear support/resistance
Risk Management: Use with stop-loss (2x ATR recommended)
Limitations: May give false signals during low-volume periods
