Directional Momentum Entries with Open-Profit Exit Thresholds
Summary
This script defines momentum as the difference between the current close and the close 12 bars earlier, then measures whether that momentum itself is rising or falling. It places a stop entry one minimum tick above the bar’s high when both measures are positive, and one tick below the low when both are negative. If the matching condition disappears before entry, the pending order is canceled, creating a directional long/short approach that follows short-term price movement.
Inputs set the lookback and open-profit thresholds for closing positions. The script closes long and short trades when open profit exceeds the target or falls below the maximum-loss threshold. It gives no market, timeframe, backtest results, or evidence of performance; the thresholds also depend on the strategy’s profit units and are not a guarantee of risk control. Weekday background shading is visual only, and the listed strategy includes no separate indicator or validation of signals.
Key ideas
- Momentum is the close-to-close change over a configurable lookback period.
- A second momentum reading checks whether the first momentum value is increasing or decreasing.
- The strategy submits stop entries beyond the current bar’s high or low when both momentum readings point in the same direction.
- Pending entries are canceled when their directional conditions no longer hold.
- Open-profit thresholds trigger exits, but the document provides no performance evidence or tested market context.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.