Trend_Trader_WMA (Momentum)

14 Sep 2023

<---> Caution! This is first test version of indicator. I am ready to get more ideas+feedback to develop it more. <--->




The "Momentum_Trader_WMA" indicator is a versatile technical analysis tool designed to help traders identify potential trend changes and momentum shifts in the market. It combines multiple indicators and moving averages to provide a comprehensive view of price action and momentum.


Key Features:

Weighted Moving Averages (WMAs): The indicator calculates two different WMAs with user-defined lengths, providing a smoothed representation of price data.

Average True Range (ATR) Bands: ATR is used to calculate dynamic bands around the WMA Average. These bands can help traders gauge market volatility and potential breakout points. The color of the ATR bands can be seen as an early signal of trends or the continuation of current trends.

Commodity Channel Index (CCI): CCI is a momentum oscillator that measures the relative strength of price changes. The indicator calculates CCI values based on a user-defined period.

Exponential Moving Average (EMA) of CCI: An EMA of CCI is plotted to help identify trends and momentum shifts.

Color-Coded Bands: The ATR bands change colors based on CCI conditions, providing visual cues for potential trading opportunities. When ATR bands transition from narrow (indicating low volatility) to wide (indicating increased volatility), it can be seen as an early signal of a potential trend change or the continuation of the current trend.

Buy and Sell Signals: The indicator generates buy and sell signals based on crossovers of WMAs and CCI thresholds, making it easier for traders to identify entry and exit points.

Customizable Moving Averages: Traders can enable or disable different moving averages (e.g., SMA, EMA, WMA, RMA, VWMA, HMA) with various periods and colors to adapt the indicator to their trading preferences.
CCI Dot Alerts: Dots are displayed at the bottom of the chart based on CCI values, helping traders spot extreme CCI conditions.




How to Use:

Trend Identification: The WMAs and ATR bands can help identify the current trend direction and its strength. When the WMAs are in an uptrend (green) and the ATR bands widen, it may indicate a strong bullish trend. Conversely, when the WMAs are in a downtrend (red) and the ATR bands narrow, it may suggest a weakening bearish trend.

Momentum Confirmation: The CCI and its EMA provide insights into market momentum. Look for CCI crossovers above 100 for potential bullish momentum and below -100 for potential bearish momentum.

Buy and Sell Signals: Pay attention to the buy and sell signals generated by the indicator. Buy when the WMAs cross over and CCI crosses above 100. Sell when the WMAs cross under and CCI crosses below -100.

ATR Bands as Early Signals: The color changes in the ATR bands can be seen as early signals of trends or the continuation of current trends. Wide ATR bands may indicate increased volatility and potential trend changes, while narrow ATR bands suggest reduced volatility and potential trend continuation.

Moving Averages: Customize the indicator by enabling or disabling specific moving averages according to your preferred trading strategy.

CCI Dots: Use the CCI dots to identify extreme CCI conditions, which may indicate overbought or oversold market conditions.





PS:
Recommended to use Indicator with price action conecpts(eg. support and resistance) as they play important role in any market.
Buy and sell signals are not really accurate. I would personally look for trend shift in WMA middle line and confirmation from CCI dots at bottom. For example. If middle line turns green and within recent 3-4 candles (or next 3-4 candles) dots tunrns green also, that means momentum has been rised in the direction of bulls.
pls, take s/r concepts first when working. I am thinking to add more precise buy sell signal method to make it easier to trade.

Good luck with your trades :)