A momentum indicator that calculates bullish and bearish strength using price range and historical highs and lows, helping traders identify potential trend directions and entry/exit points.
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The indicator generates two lines, M+ and M-, which measure bullish and bearish momentum by analyzing average true range and historical price extremes. These lines fluctuate around a zero line, with crossovers and positioning indicating potential trend strength and direction.
When the M+ line crosses above zero, it suggests a potential long position opportunity, while the M- line crossing above zero indicates a potential short position. The further the lines are from zero, the stronger the trend, with a 100 value representing maximum trend strength in that direction.
Why it may be useful
This momentum indicator provides traders with a dynamic tool to assess market sentiment and potential trend reversals by quantifying the strength of bullish and bearish movements. It helps traders make more informed decisions by offering clear visual signals about market momentum and potential entry and exit points.
By revealing the balance between buying and selling pressure, the indicator allows traders to understand market dynamics beyond simple price movement. Its ability to show trend strength and potential shifts makes it valuable for identifying high-probability trading opportunities across different market conditions.
When to explore it
The indicator works best in trending markets where clear momentum shifts can be identified and leveraged for trading decisions. It is particularly effective during periods of sustained price movement, where the divergence between M+ and M- lines can signal strong directional trends.
Traders should use this indicator in conjunction with other technical analysis tools to confirm signals and reduce false positives. It is most reliable in markets with consistent volatility and when used across multiple timeframes to validate potential trade setups.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
