OPEN-SOURCE SCRIPT
BTC Momentum Detector 1h
# BTC Momentum Detector 1h
This indicator is designed to detect significant momentum movements in Bitcoin price on the 1-hour timeframe. It identifies candles with percentage changes within a specific range, which often precede larger price movements.
## How It Works
The indicator analyzes price movements to detect potential momentum shifts:
- Identifies candles with percentage changes between configurable thresholds (default: 1.7% - 2.8%)
- Requires neutral or inverse movement in the prior candle to avoid false signals
- Optional volume filter ensures signals are confirmed by above-average trading activity
- Tracks price continuation to calculate success rates and average returns
## Key Features
- **Signal Detection**: Green triangles below price bars indicate upward momentum signals; red triangles above price bars indicate downward momentum signals
- **Continuation Tracking**: Dashed horizontal lines show the entry price levels of active signals being tracked
- **Statistics Panel**: Displays real-time metrics including signal counts, success rates, and average returns
- **Current Status**: Shows the current price change percentage and active signals being monitored
## Parameters
- **Minimum Percentage Threshold**: Minimum price change to trigger a signal (default: 1.7%)
- **Maximum Percentage Threshold**: Maximum price change to filter out extreme moves (default: 2.8%)
- **Continuation Periods**: Number of periods to track after signal (default: 2)
- **Require Prior Neutral/Inverse**: Filters signals by requiring neutral or opposite prior movement
- **Neutral Threshold**: Defines what's considered a neutral movement (default: 0.1%)
- **Volume Filter**: Option to require above-average volume for confirmation
- **Volume Multiplier**: Volume must exceed average by this factor (default: 2x)
## Strategy Concept
The underlying strategy is based on the concept that when Bitcoin makes a controlled, significant move (not too small, not too large) after a period of neutral or opposite movement, it often continues in that direction for the next few periods. This pattern reflects the early stages of momentum development in the market.
This indicator is designed to detect significant momentum movements in Bitcoin price on the 1-hour timeframe. It identifies candles with percentage changes within a specific range, which often precede larger price movements.
## How It Works
The indicator analyzes price movements to detect potential momentum shifts:
- Identifies candles with percentage changes between configurable thresholds (default: 1.7% - 2.8%)
- Requires neutral or inverse movement in the prior candle to avoid false signals
- Optional volume filter ensures signals are confirmed by above-average trading activity
- Tracks price continuation to calculate success rates and average returns
## Key Features
- **Signal Detection**: Green triangles below price bars indicate upward momentum signals; red triangles above price bars indicate downward momentum signals
- **Continuation Tracking**: Dashed horizontal lines show the entry price levels of active signals being tracked
- **Statistics Panel**: Displays real-time metrics including signal counts, success rates, and average returns
- **Current Status**: Shows the current price change percentage and active signals being monitored
## Parameters
- **Minimum Percentage Threshold**: Minimum price change to trigger a signal (default: 1.7%)
- **Maximum Percentage Threshold**: Maximum price change to filter out extreme moves (default: 2.8%)
- **Continuation Periods**: Number of periods to track after signal (default: 2)
- **Require Prior Neutral/Inverse**: Filters signals by requiring neutral or opposite prior movement
- **Neutral Threshold**: Defines what's considered a neutral movement (default: 0.1%)
- **Volume Filter**: Option to require above-average volume for confirmation
- **Volume Multiplier**: Volume must exceed average by this factor (default: 2x)
## Strategy Concept
The underlying strategy is based on the concept that when Bitcoin makes a controlled, significant move (not too small, not too large) after a period of neutral or opposite movement, it often continues in that direction for the next few periods. This pattern reflects the early stages of momentum development in the market.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.