Momentum & Money Flow Strategy with Triple EMA Smoothing
Hi, this is a Momentum and Money flow strategy that works in all time frames. Explanation: 1. Triple EMA Smoothing: • The raw momentum is calculated using ta.roc(). • The line is then smoothed by applying three successive exponential moving averages via ta.ema(). This chained approach helps reduce noise and produce a smoother signal line. 2. Trading Logic: • Long Signals: Occur when the smoothed momentum is positive and the MFI is above the middle level. • Short Signals: Occur when the smoothed momentum is negative and the MFI is below the middle level. • Exits are triggered based on turning point conditions in both momentum and the MFI. 3. Plotting: • The smoothed momentum is plotted in blue, and the MFI is plotted in orange, with a horizontal line marking the MFI middle level for reference.
This forward-thinking approach should better capture the underlying market momentum while reducing noise. Please backtest and fine-tune the parameters to align with your trading style on the 7-minute chart.