Archived: TMO True Momentum Oscillator

[humanz27]

Hey YungTraderFromMontana - Thank you for sharing - can you describe a little what it is supposed to do so it can be validated please. thank you!

 

[YungTraderFromMontana]

Hey YungTraderFromMontana - Thank you for sharing - can you describe a little what it is supposed to do so it can be validated please. thank you!

It uses the tmo to determine a good swing entry after a selloff. It works best on long term uptrending stocks and I would avoid diluted messes that have gone down for the last 5 years.
Here is an example of a stock that popped up on the scan that also shows strong momentum on the multi agg tmo. Use the scan to narrow down the playing field and then the lower study I posted to capture the best of the best.
https://tos.mx/LzZDvEr

 

[Thomas]

This is a nice chart, clearly seeing the trend, but TMO has to be clearly defined and its interpretive like RSI/Laguerre. Try a second TMO, change to one color, and have the time frame setting higher, just to confuse you more.

 

[switchfire]

Hello, noob question here. I want to understand more about how TMO works. What does it mean exactly by Delta? I'm used to the options greek definition of delta. I'm kind of guessing this means "the change of price". Thanks for any knowledge!

 

[BenTen]

@switchfire I don’t think the term delta being used here is related to the option greeks.

 

[horserider]

Delta refers to change in mathematical calculations. In some cases, this means a difference between two values, such as two points on a line. In other cases, it refers to the rate of change, such as in a derivative. So yes a change in price.

 

[markos]

C'mon @Thomas ,you've been around the TSL too long! @switchfire had a noob question and wants to learn. @BenTen has created a site with readers from around the world because we help here. Sarcasm is not needed, please leave that at the TSL.

@switchfire this is not as straight forward of an answer to give as one may think. @Thomas did note elsewhere that this study along with the RSI in Laguerre Time Transform study are very nuanced studies. Watch them both intently on one product like the SPY at your time frame. See how they react.

Also read everything you can in what I and others have posted in the Tutorial section, below in the suggested links, and in the Universe of Thinkscript which is in the Tutorials as well. The Universe of Thinkscript has over 2 years of practically each day's full transcript of questions and conversation directly from the ThinkScript Lounge. Sorry I can't be of more help. @Nick @MBF , do either one of you former noobs have an answer to @switchfire 's question? Anyone else?

 

[HighBredCloud]

Oh, I see, I literally took the question by the word Delta....hum, ......Horse rider explained it perfectly, place two TMO's on a chart as Mobius mentioned, there are instructions as to the time frames apart, and then look through the charts to see how the indicator reacts. I will share notes on another post. I personally placed a daily, weekly, as trend is positive, and the daily dips deep into lower zone, look for a set up buy point?

There is a TMO MTF on here if you search True Momentum Oscillator...no need to place two TMO's on top of each other anymore...

 

[Thomas]

Looking through all the good efforts, I set up a chart like so, contains blastoff and reversal on top. Reversal is slightly off but I suppose if you were trading live,......BlastOff not bad,.......but price is the winner........ B&W is proven to highlight patterns.......https://tos.mx/omFEdoR

 

[tenacity11]

https://imgur.com/cX6TSBY

Is it possible to code a divergence scan for this
TIA

 

[tem2005]

@HighBredCloud

or if i can ask about the cyan and pink line in the upper chart?

 

[dvorakm]

Is there a custom watchlist indicator available for TMO or TMO MTF?

 

[markos]

@dvorakm not that I know of. You can create a scan in the wizard so it suits your liking and then save that as a watchlist.

 

[HighBredCloud]

@markos @dvorakm There is...Just make sure to set to the appropriate timeframe as the default is set to the DAILY...If you want more instances just copy and paste this code as many times as you need and save each one with the timeframe that you want.

input length = 14;

input calcLength = 5;

input smoothLength = 3;


def o = open;

def c = close;

def data = fold i = 0 to length

           with s

           do s + (if c > getValue(o, i)

                   then 1

                   else if c < getValue(o, i)

                        then - 1

                        else 0);

def EMA5 = ExpAverage(data, calcLength);

def Main = ExpAverage(EMA5, smoothLength);

def Signal = ExpAverage(Main, smoothLength);

plot isTrue = if Main > Signal then 1 else 0;

AssignBackgroundColor(if Main > Signal

                           then color.dark_green

                           else color.dark_red);

 

[subharmonic]

Here is my version. I have some similar ones with different indicators that act like histogram colors too.

# TMO ((T)rue (M)omentum (O)scilator)
# Mobius
# V01.05.2018
#hint: TMO calculates momentum using the delta of price. Giving a much better picture of trend, tend reversals and divergence than momentum oscillators using price.

declare Lower;

input length = 21;
input calcLength = 5;
input smoothLength = 3;

def o = open;
def c = close;
def data = fold i = 0 to length
           with s
           do s + (if c > getValue(o, i)
                   then 1
                   else if c < getValue(o, i)
                        then - 1
                        else 0);
def EMA5 = ExpAverage(data, calcLength);
def Main = ExpAverage(EMA5, smoothLength);
def Signal = ExpAverage(Main, smoothLength);
assignBackgroundColor(if Main > Signal
                           then color.dark_green
                           else color.Dark_red);
 

def ob = if isNaN(c) then double.nan else round(length * .7);

def os = if isNaN(c) then double.nan else -round(length * .7);

plot IntheGreen = (Signal < os);
AddLabel(IntheGreen, "OS", Color.White);
plot IntheRed = (Signal > ob);
AddLabel(IntheRed, "OB", Color.White);
plot IntheMIddle = (Signal < ob and Signal > OS);
AddLabel(IntheMIddle, "--", Color.black);

 

[markos]

@subharmonic just curious, could you tell why you chose to use the following? Your time frame or other?
round(length * .7)
Thanks, always learning from other's point of view, Markos

 

[subharmonic]

@markos
I am a swing trader so I trade on the daily, 4 hour gives me a early warning to the day bars, weekly and monthly to try and go with the flow.

The .7 was default from the OC Mobius, I never moved it around, only the length. I do not trade on crossovers, I use it to give me a fast view of where in the cycles we are, is the momo starting to wain for a reversion or is the larger TF rolling over. I like D/W stretched and look for a divergence on a double bottom/top on the daily with the 4 hour going in the direction I am into.

I guess one could tailor the TF and length or multiplication factor, go for the really stretched hard securities. If it crosses out of the OS/OB territory it goes more often than not with the current settings.

 

[CoachT]

@subharmonic Im relatively new to ThinkorSwim platform. Could you help explain how you were able to adjust your watchlist to add the TMO options. I have copied to the code into my Shared Items but do not understand how to create a WatchList that depicts the TMO indicator. Thanks!

 

[subharmonic]

@CoachT
Not me but here is a brief video.

 

[subharmonic]

This plots a rounded value to give you a better idea of where in the cycle the signal line is.

# TMO ((T)rue (M)omentum (O)scilator)
# Mobius
# V01.05.2018
#hint: TMO calculates momentum using the delta of price. Giving a much better picture of trend, tend reversals and divergence than momentum oscillators using price.

declare Lower;

input length = 21;
input calcLength = 5;
input smoothLength = 3;

def o = open;
def c = close;
def data = fold i = 0 to length
           with s
           do s + (if c > getValue(o, i)
                   then 1
                   else if c < getValue(o, i)
                        then - 1
                        else 0);
def EMA5 = ExpAverage(data, calcLength);
def Main = ExpAverage(EMA5, smoothLength);
def Signal = ExpAverage(Main, smoothLength);
assignBackgroundColor(if Main > Signal
                           then color.dark_green
                           else color.Dark_red);
 

def ob = if isNaN(c) then double.nan else round(length * .7);

def os = if isNaN(c) then double.nan else -round(length * .7);

plot IntheGreen = (Signal < os);
AddLabel(IntheGreen, "OS", Color.White);
plot IntheRed = (Signal > ob);
AddLabel(IntheRed, "OB", Color.White);
plot IntheMIddle = (Signal < ob and Signal > OS);
AddLabel(IntheMIddle,  Round(Signal, 0), Color.White);