Riot Momentum

Riot Momentum is a multi-factor momentum oscillator that combines three distinct signal types into a single normalized reading, inspired by systematic trading principles from Rob Carver's approach to trend-following.

How It Works

The indicator blends three momentum components with different characteristics:
EWMAC (Exponentially Weighted Moving Average Crossover) — Measures the difference between fast and slow EMAs across three timeframe pairs (8/32, 16/64, 32/128), normalized by recent price volatility. This captures trend direction with volatility adjustment.
Breakout — Calculates where price sits within its recent range across three lookback periods (20, 40, 80 bars), then smooths the result. Values near +20 indicate price near range highs; values near -20 indicate price near range lows.
Acceleration — Measures the rate of change in momentum itself, detecting whether trends are speeding up or slowing down.
These components are weighted (EWMAC 4x, Breakout 2x, Acceleration 1x), combined, and capped at ±20 before being rescaled to ±100 for display.

Visual Elements

The histogram displays momentum strength with colors determined by statistical deviation from the rolling mean:

Normal intensity (within 1.5σ): Standard green/red
Elevated intensity (1.5-2.0σ): Brighter green/red
Peak intensity (beyond 2.0σ): Maximum saturation — potential exhaustion zones

Optional Z-score bands show these statistical thresholds directly on the chart. The momentum MA (default 20 periods) provides a smoothed reference with crossover signals marked by triangles.
Interpretation

Values above zero suggest bullish momentum; below zero suggests bearish. The color intensity indicates how extended current momentum is relative to recent history — peak colors often precede mean reversion. MA crossovers can signal momentum shifts before the histogram crosses zero.


Settings

Z-Score Lookback: Period for calculating statistical bands (default 256)
Elevated/Peak Levels: Sigma thresholds for color intensity changes
Momentum MA Length: Smoothing period for the reference line
Toggle options for bands, histogram, MA line, and candle coloring

Suggested Use

Works across all markets and timeframes. Consider combining with price structure analysis — strong momentum readings that align with key levels tend to produce higher-probability setups. Peak color readings warrant caution as they often indicate stretched conditions.