"TMO calculates momentum using the delta of price. Giving a much better picture of trend, trend reversals and divergence than momentum oscillators using price". This is comparable to the WaveTrend Oscillator, gives more or less better or worse signals depending on the time frame and markets. This is a free and open source indicator found in many platforms, now ported to TV.
This indicator uses the closing and opening of the price in a way that reminds me of the Qstick indicator but it seems different. It's an oscillator with overbought and oversold zones and crossovers for entry and exits. I included the option of changing the moving averages from the standard exponential types used in its 3 functions to calculate the main and signal lines just in case the settings need to be changed further or if anyone wants to experiment to find better settings on top of just changing the lengths for each length type. I added dots for when the Main line crosses the Signal line. The Main line is darkened in case anyone needs to see it better.
Your implementation is true to the original thinkScript code.
Personally I think the original implementation has some flaws unfortunately. For example the formula. Instead of using the open of i, you would get exactly the same result as using the close of i+1. This would make the indicator much more flexible, as you could apply it to just any source.
I also think that having a maximum value of s that is always one greater than the input length, is not what the original author intended. It's probably just a result of doing a quick job on the math.
For an oscillator it also doesn't make sense to not be normalized to a fixed range, like RSI. It only makes it harder to work with TMO when the length is changed.
I wish those issues would have been addressed by the original author.
You probably noticed this yourself, when you put in the hlines. They're at 70%, but of 14. The indicator is bound to 15 though. It's just strange that TMO 14 would look 15 candles back.
Thanks for this 1:1 port though. Great work.
SparkyFlary
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@hCaostrader, Yes I agree, I never did quite understood it. The original author I think they said was Mobius, he seems to be quite adept at coding indicators but maybe not so much on their settings. For example on his Supertrend, he'd probably focus more on win rate or something even if the logic might be wrong or different or atleast that's what I think, but who knows. He would use a hull moving average for his Supertrend rather than the usual exponential, simple, or running moving averages that most ATR trailing stops use. TMO to me looks kind of similar to Chande's Qstick and Intraday Momentum Index, maybe you'll like those.
Personally I think the original implementation has some flaws unfortunately. For example the formula. Instead of using the open of i, you would get exactly the same result as using the close of i+1. This would make the indicator much more flexible, as you could apply it to just any source.
I also think that having a maximum value of s that is always one greater than the input length, is not what the original author intended. It's probably just a result of doing a quick job on the math.
For an oscillator it also doesn't make sense to not be normalized to a fixed range, like RSI. It only makes it harder to work with TMO when the length is changed.
I wish those issues would have been addressed by the original author.
You probably noticed this yourself, when you put in the hlines. They're at 70%, but of 14. The indicator is bound to 15 though. It's just strange that TMO 14 would look 15 candles back.
Thanks for this 1:1 port though. Great work.