Magma Momentum

This is a simple and easy-to-read momentum indicator that can help you identify divergences and shifts in momentum.

A divergence is when price moves in one direction but the indicator moves in the opposite direction. This typically is a sign of price exhaustion and can indicate that price is about to reverse, at least momentarily.

Here is a comparison with RSI (relative strength index) and some examples of divergences.

Enjoy.

Release Notes

Added two new optional components: OBVM (On balance volume momentum) based on OBV and a custom Chaikin Money Flow. I highly recommend enabling these in the settings as they can be used for extra confirmation of momentum.
Since the OBVM is based on volume it is often a leading indicator. All of these tools used in combination can give very strong signals and can help keep you out of bad trades.

Release Notes

Added smoothing to momentum waves, tweaked OBVM and made a bunch of improvements to CMF..

Release Notes

Added line mode

Protected script

This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.

chipmonk

Disclaimer

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Protected script

This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.

chipmonk