Momentum Tide [Alpha Extract] For ThinkOrSwim

[FreefallJM03]

The author states:
This is a momentum-based trend identification system
Unlike traditional momentum oscillators, Momentum Tide integrates directly with price action.
The three-state system filters ranging periods using a momentum strength measurement.

Here is the original Tradingview code:
https://www.tradingview.com/script/6Rm7rtzu-Momentum-Tide-Alpha-Extract/

For the new ThinkOrSwim code, you must scroll down to the next post

 

[mc01439]

Quick Summary: How to Use Momentum Tide​

1. Baseline Trend

• The EMA baseline (default 50‑period) is your primary trend anchor.
• Price above baseline → bullish bias
• Price below baseline → bearish bias

2. Momentum Tide Signal

• The core signal is a normalized deviation of price from the baseline.
• It’s ATR‑scaled and run through a tanh curve to compress extremes.
• This produces a smooth, stable momentum reading between ‑1 and +1.

3. Trend States
Momentum Tide classifies each bar into:

State	Meaning
+1 (Bull)	Momentum strongly positive
0 (Neutral)	Inside the ATR neutral band
‑1 (Bear)	Momentum strongly negative

The neutral band prevents “whipsaw flips.”

4. Bar Colors

• Green → Bullish momentum
• Red → Bearish momentum
• Gray → Neutral

This gives an immediate visual read of trend direction.

5. Flip Markers

• Triangle Up → Bullish momentum flip
• Triangle Down → Bearish momentum flip

These mark transitions when the state changes from bull ↔ bear.

6. Strength

• Strength = |clamped|
• Higher strength → stronger trend conviction
• Lower strength → weakening trend

In TradingView this drives color fading; in Thinkorswim you’ll see it through behavior rather than visuals.

How Traders Typically Use It​

Trend Confirmation
Use Momentum Tide to confirm:

• Breakouts
• Pullbacks
• Trend continuation setups

Momentum Shifts
Flip markers help identify:

• Early trend reversals
• End of pullbacks
• Momentum exhaustion

Filtering Trades
Avoid trades when:

• State = 0 (neutral)
• Strength is weak

Baseline Interaction
Strong signals occur when:

• Momentum flips near the baseline
• Price reclaims the baseline with a bull flip
• Price loses the baseline with a bear flip

# Momentum Tide [Thinkorswim Port]
# Core math conversion from TradingView version

input lenBaseline = 50;
input lenSmooth   = 8;
input atrLen      = 15;
input neutralBand = 0.08;
input slopeScaler = 1.8;
input showBaseline = yes;
input showTri = yes;

# === Core Trend Math ===

def baseline = ExpAverage(close, lenBaseline);
def atrValue = Average(TrueRange(high, close, low), atrLen);

# Prevent divide-by-zero
def safeATR = Max(atrValue * slopeScaler, TickSize());

def rawDeviation = (close - baseline) / safeATR;
def signal = ExpAverage(rawDeviation, lenSmooth);

# --- TanhSafe conversion ---
def capped = Max(Min(signal, 20), -20);
def e2 = Exp(2 * capped);
def clamped = (e2 - 1) / (e2 + 1);

# Trend state
def state =
    if clamped > neutralBand then 1
    else if clamped < -neutralBand then -1
    else 0;

def strength = AbsValue(clamped);

# === Colors ===
DefineGlobalColor("Bull", CreateColor(31, 222, 185));
DefineGlobalColor("Bear", CreateColor(214, 24, 104));
DefineGlobalColor("Neutral", CreateColor(120, 128, 138));

def isBull = state == 1;
def isBear = state == -1;

# === Baseline Plot ===
plot Base = if showBaseline then baseline else Double.NaN;

Base.AssignValueColor(
    if isBull then GlobalColor("Bull")
    else if isBear then GlobalColor("Bear")
    else GlobalColor("Neutral")
);

Base.SetLineWeight(2);

# === Bar Coloring ===
AssignPriceColor(
    if isBull then GlobalColor("Bull")
    else if isBear then GlobalColor("Bear")
    else GlobalColor("Neutral")
);

# === Flip Markers ===
def lastState = state[1];

def isGreenFlip = state == 1 and lastState != 1;
def isRedFlip   = state == -1 and lastState != -1;

plot UpFlip = if showTri and isGreenFlip then low else Double.NaN;
UpFlip.SetPaintingStrategy(PaintingStrategy.ARROW_UP);
UpFlip.SetDefaultColor(GlobalColor("Bull"));
UpFlip.SetLineWeight(2);

plot DownFlip = if showTri and isRedFlip then high else Double.NaN;
DownFlip.SetPaintingStrategy(PaintingStrategy.ARROW_DOWN);
DownFlip.SetDefaultColor(GlobalColor("Bear"));
DownFlip.SetLineWeight(2);

@FreefallJM03