ShortTermMomentumTrading
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This script is a multi-layered technical analysis tool designed to identify specific high-probability trading opportunities by filtering market data through four distinct statistical lenses. Instead of relying on a single indicator, it requires several conditions to align simultaneously before generating a signal.
Core Logic and Filtering Process
The script operates as a "gatekeeper," checking the current price action against four independent technical criteria. A trade signal is only triggered if the requirements for all active components are met at once.
1. Trend and Momentum Analysis (ADX) The tool uses the Average Directional Index (ADX) to measure the strength of a trend. It looks for "directional dominance." For a bullish signal, it ensures that upward momentum is stronger than downward momentum and exceeds a specific intensity threshold. Conversely, for a bearish signal, it ensures downward momentum is dominant and sufficiently strong.
2. Overbought/Oversold Pressure (CCI) The Commodity Channel Index (CCI) acts as a momentum-based oscillator. The script monitors whether the price is moving significantly away from its average. It looks for extreme values to confirm that the market has enough "velocity" to support a move in the intended direction.
3. Price Smoothing and Filtering (Laguerre Filter) By utilizing a Laguerre Filter, the script attempts to smooth out market "noise." This helps the tool distinguish between erratic price fluctuations and actual structural shifts. It compares the current opening price against this smoothed line to confirm that the price is moving in the correct direction relative to the recent trend.
4. Moving Average Crossover (LMWA) The final layer of logic involves a specific type of Moving Average interaction. The script monitors two different lengths of averages. A signal is generated when these lines cross each other, but only after they have already met all the previous conditions (ADX, CCI, and Laguerre). This ensures that the crossover isn't just a random fluctuation, but a confirmed trend shift backed by momentum and volume.
Signal Execution and Notifications
Once the script confirms that all four conditions are satisfied for a specific direction, it executes three types of notifications simultaneously:
- Visual Cues: It places colored arrows directly on the trading chart (Lime for bullish signals, Red/White for bearish signals) to highlight the entry point.
- Instant Alerts: A pop-up alert notification is triggered within the trading platform, displaying the symbol, timeframe, and price level.
- Email Notifications: An automated email is sent to the user's linked account, providing a written record of the trigger.
Safety and Optimization Features
- Redundancy Protection: The script includes logic to prevent "alert spam." It tracks whether a signal has already been sent for the current candle to ensure you only receive one notification per occurrence.
- Modular Toggle: Users can independently turn specific indicators (ADX, CCI, LMWA, or Laguerre) on or off via the settings menu, allowing for a customized "strictness" level in the trading logic.
- Reset Mechanism: The script monitors the status of the signals to reset its internal tracking, ensuring it is ready to detect the next valid setup as soon as market conditions change again.
#property copyright "REMOVED BY ME TO PROTECT THE REPUTATION OF THE PROGRAMMER"
extern bool UseArrow = true;
extern bool UseAlert = true;
extern bool UseEmail = true;
extern bool LMWA_On = true;
extern int LMWA_ShortLength = 3;
extern int LMWA_LongLength = 13;
extern int LMWA_Price = 0;
extern bool LF_On = true;
extern double LF_Gamma = 0.85;
extern int LF_Price = 0;
extern bool CCI_On = true;
extern int CCI_Length = 14;
extern int CCI_Price = 0;
extern int CCI_Threshold = 100;
extern bool ADX_On = true;
extern int ADX_Length = 14;
extern int ADX_Price = 0;
extern int ADX_Threshold = 20;
int lastAlert, lastTime;
//+------------------------------------------------------------------+
//| expert initialization function |
//+------------------------------------------------------------------+
int init()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| expert deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| expert start function |
//+------------------------------------------------------------------+
int start()
{
//----
if(CheckADX(1)==true || ADX_On==false)
{
if(CheckCCI(1)==true || CCI_On==false)
{
if(CheckLF(1)==true || LF_On==false)
{
// All standard conditions valid - checking LMWA
if(lastAlert!=1 && (CheckLMWA(1)==true || LMWA_On==false) && lastTime<iTime(NULL,0,0))
{
lastAlert=1;
lastTime=iTime(NULL,0,0);
if(UseArrow==true) PlotSignal(1);
if(UseAlert==true) SendAlert(1);
if(UseEmail==true) SendEmail(1);
}
}
}
}
if(CheckADX(-1)==true || ADX_On==false)
{
if(CheckCCI(-1)==true || CCI_On==false)
{
if(CheckLF(-1)==true || LF_On==false)
{
// All standard conditions valid - checking LMWA
if(lastAlert!=-1 && (CheckLMWA(-1)==true || LMWA_On==false) && lastTime<iTime(NULL,0,0))
{
lastAlert=-1;
lastTime=iTime(NULL,0,0);
if(UseArrow==true) PlotSignal(-1);
if(UseAlert==true) SendAlert(-1);
if(UseEmail==true) SendEmail(-1);
}
}
}
}
if(lastAlert==1 && CheckReset(1)==false) lastAlert=0;
if(lastAlert==-1 && CheckReset(-1)==false) lastAlert=0;
//----
return(0);
}
//+------------------------------------------------------------------+
bool CheckLMWA(int mode)
{
double lmwaS=iMA(NULL,0,LMWA_ShortLength,0,3,LMWA_Price,1);
double lmwaSp=iMA(NULL,0,LMWA_ShortLength,0,3,LMWA_Price,2);
double lmwaL=iMA(NULL,0,LMWA_LongLength,0,3,LMWA_Price,1);
double lmwaLp=iMA(NULL,0,LMWA_LongLength,0,3,LMWA_Price,2);
if(mode==1)
{
if(lmwaS>lmwaL && lmwaSp<lmwaLp)
{
// Long conditions valid
return(true);
}
}
else if(mode==-1)
{
if(lmwaS<lmwaL && lmwaSp>lmwaLp)
{
// Long conditions valid
return(true);
}
}
return(false);
}
bool CheckReset(int mode)
{
double lmwaS=iMA(NULL,0,LMWA_ShortLength,0,3,LMWA_Price,1);
double lmwaL=iMA(NULL,0,LMWA_LongLength,0,3,LMWA_Price,1);
if(mode==1)
{
if(lmwaS>lmwaL)
{
// Long conditions valid
return(true);
}
}
else if(mode==-1)
{
if(lmwaS<lmwaL)
{
// Long conditions valid
return(true);
}
}
return(false);
}
bool CheckADX(int mode)
{
double di_plus=iADX(NULL,0,ADX_Length,ADX_Price,MODE_PLUSDI,0);
double di_minus=iADX(NULL,0,ADX_Length,ADX_Price,MODE_MINUSDI,0);
if(mode==1)
{
if(di_plus>di_minus && di_plus>ADX_Threshold)
{
// Conditions for long ADX valid
return(true);
}
}
else if(mode==-1)
{
if(di_plus<di_minus && di_minus>ADX_Threshold)
{
// Conditions for short ADX valid
return(true);
}
}
return(false);
}
bool CheckCCI(int mode)
{
double cci=iCCI(NULL,0,CCI_Length,CCI_Price,0);
if(mode==1 && cci>CCI_Threshold)
{
// CCI long conditions valid
return(true);
}
else if(mode==-1 && cci<-CCI_Threshold)
{
// CCI short conditions valid
return(true);
}
return(false);
}
bool CheckLF(int mode)
{
double lf=iCustom(NULL,0,"LaguerreFilter",LF_Gamma,LF_Price,0,0);
if(mode==1)
{
if(Open[0]>lf)
{
// Laguerre conditions valid
return(true);
}
}
else if(mode==-1)
{
if(Open[0]<lf)
{
// Laguerre conditions valid
return(true);
}
}
return(false);
}
void PlotSignal(int mode)
{
if(mode>0)
{
ObjectCreate("Signal_"+iTime(NULL,0,0),OBJ_ARROW,0,iTime(NULL,0,0),Low[iLowest(NULL,0,MODE_LOW,3,0)]);
ObjectSet("Signal_"+iTime(NULL,0,0),OBJPROP_ARROWCODE,172);
ObjectSet("Signal_"+iTime(NULL,0,0),OBJPROP_COLOR,Lime);
}
else if(mode<0)
{
ObjectCreate("Signal_"+iTime(NULL,0,0),OBJ_ARROW,0,iTime(NULL,0,0),High[iHighest(NULL,0,MODE_HIGH,3,0)]);
ObjectSet("Signal_"+iTime(NULL,0,0),OBJPROP_ARROWCODE,172);
ObjectSet("Signal_"+iTime(NULL,0,0),OBJPROP_COLOR,White);
ObjectSet("Signal_"+iTime(NULL,0,0),OBJPROP_COLOR,Red);
}
return(0);
}
void SendAlert(int mode)
{
if(mode==1)
{
Alert("Buy triggered on "+Symbol()+"/"+Period()+" at Level "+DoubleToStr(Close[0],5)+" ("+TimeToStr(TimeCurrent(),TIME_MINUTES)+")");
return(0);
}
else if(mode==11)
{
Alert("Sell triggered on "+Symbol()+"/"+Period()+" at Level "+DoubleToStr(Close[0],5)+" ("+TimeToStr(TimeCurrent(),TIME_MINUTES)+")");
return(0);
}
return(0);
}
void SendEmail(int mode)
{
if(mode==1)
{
SendMail("Long Trigger","Buy triggered on "+Symbol()+"/"+Period()+" at Level "+DoubleToStr(Close[0],5)+" ("+TimeToStr(TimeCurrent(),TIME_MINUTES)+")");
return(0);
}
else if(mode==11)
{
Alert("Short trigger","Sell triggered on "+Symbol()+"/"+Period()+" at Level "+DoubleToStr(Close[0],5)+" ("+TimeToStr(TimeCurrent(),TIME_MINUTES)+")");
return(0);
}
return(0);
}
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