Momentum Divergence

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isaacramsay

New member
2019 Donor
I've been using this Momentum Divergence study daytrading SPY options and have been struggling to make it tangible for many months. I have the rules for it but implementing with thinkscript can be a headache at times. There's an upper and lower study.
Currently the upper only plots one bullish div, and it doesn't have the 5 days on either side condition(step 4).

Bullish Mom Div:
1. Look at the last 60 price bars.
2. Find the lowest intraday price.
3. Look at the 28 MOM.
4. Was the lowest intraday low accompanied by a new low in MOM +/− five days on either side of the date of the price low?
5. If YES then there is no buy setup.
6. If no, then there is a buy setup (BSU).
7. If there is a BSU then mark your chart as follows:
A = the new intraday price low
B = the MOM for the same date as A
C = the lowest MOM previous to B
D = the intraday price low for the same date as point C
8. Examine your chart. Is the low at A lower than the low at D while the MOM at B is higher than the MOM at C?
9. If this is true, then find the highest MOM between points B and C inclusive (for example, including these two points) and mark it with the letter E.
10. If MOM penetrates E at the end of any bar then you have a buy trigger.
11. After the trigger has been hit and you have entered a trade, find the highest intraday high and the lowest intraday low between points A and D.
12. Calculate the difference between these two prices.
13. Calculate 50 percent of the difference. You now have the first profit target (PT1).
14. If you have a long position, add the price of the market on the trigger date to PT1 to get your exact profit target
15. The full profit target (PT2) is the full range of the difference you calculated.

Bearish Mom Div:
1. Look at the last 60 price bars.
2. Find the highest intraday price high.
3. Look at the 28 MOM.
4. Was the highest intraday high accompanied by a new high in MOM +/− five days on either side of the date of the price high?
5. If YES then there is no sell setup.
6. If NO then there is a sell setup (SSU).
7. If there is a SSU, then mark your chart as follows:
A = the new intraday price high
B = the MOM for the same date as A
C = the highest MOM previous to B
D = the intraday price high for the same date as point C
8. Examine your chart. Is the high at A higher than the high at D, while the MOM at B is lower than the MOM at C?
9. If this is true, then find the lowest MOM between points B and C inclusive (i.e., including these two points) and mark it with the letter E.
10. If MOM penetrates E at the end of any bar, then you have a sell trigger.
11. After the trigger has been hit and you have entered a trade, find the highest intraday high and the lowest intraday low between points A and D.
12. Calculate the difference between these two prices.
13. Calculate 50 percent of the difference. You now have the first profit target (PT1).
14. If you have a short position, subtract the price of the market on the trigger date from PT1 to get your exact profit target.
15. The full profit target (PT2) is the full range of the difference you calculated.

The idea:
  • it runs through the chart and plots all the momentum div setups (A, B, C, D points and/or line)
  • a price level that starts at point E and extends right until Momentum crosses E's value
  • if this is possible, these boxes(from BenTen's study with Demand Zones) be added that start at the price when Momentum crosses E and ends at PT1 and PT2 price levels, or any way to show PT1 and PT2 per div
* end of study. this will be made into a strategy as well and I will post in the comments when it is made. just want to offer both the study and the strategy*

If anyone can help or would like to complete this, it would save me time and stress. For some this could be very easy, to me it is not. Well not with thinkscript. I was able to script this in python and have it place trades with TDA's APIs. Being able to see it would be incredible and greatly appreciated.
 
I

isaacramsay

New member
2019 Donor
So Maniac posted that MACD Div on thurs, I made a plan to study the hell out of the syntax and how it functions and try to get my edit of it by the end of the weekend... and on Sunday night, I give you the Power Momentum Formula
 

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