Multi-Timeframe Momentum Signals for Intraday Trading

Summary

The document describes a color-coded momentum indicator for intraday charts. It calculates momentum on 15-minute, hourly, and four-hour timeframes, then displays colors according to whether the readings are positive or negative. Stronger green or red states represent agreement across more timeframes, while lighter shades indicate agreement on fewer timeframes. The indicator is intended for use on five- or 15-minute charts, with the higher-timeframe readings updated at candle close.

The suggested interpretation is directional: avoid opening shorts during the strongest positive state and avoid opening longs during the strongest negative state. The document provides indicator logic but no backtest, trade examples, performance statistics, or risk controls. It does not establish that the color states predict returns, and momentum readings can lag or reverse. Its guidance is therefore a heuristic for day trading rather than evidence of a validated strategy.

Key ideas

• The indicator compares momentum readings from 15-minute, hourly, and four-hour periods.
• Colors distinguish agreement across all three timeframes from agreement on only some of them.
• The author suggests using the signal on five- or 15-minute charts for day trading.
• The document gives no performance evidence, exit rules, or risk-management method.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.