Synthetic EMA Momentum with Adaptive Positive and Negative Levels

Summary

This indicator combines momentum readings from exponential moving averages across five horizons into one synthetic curve. The component averages use different periods and staggered historical offsets; their percentage differences are weighted by period relationships before being averaged. The resulting series is intended to summarize momentum across short and longer horizons rather than display each EMA comparison separately.

It also maintains separate adaptive signal levels for positive and negative readings, updating each side only while the synthetic value remains on that side of zero. The indicator marks readings above the positive level or below the negative level with distinct colors, presenting these as approximate overbought and oversold references. The document provides implementation logic, but no entry or exit rules, parameter-selection rationale, backtest, or evidence of predictive performance. The levels should therefore be treated as descriptive indicator features, not validated trading signals.

Key ideas

• The indicator synthesizes momentum comparisons across five EMA horizons into one curve.
• The component comparisons use different period lengths and staggered offsets.
• Positive and negative adaptive levels update separately when the synthetic reading is on the corresponding side of zero.
• The curve is visually distinguished when it exceeds either adaptive level.
• The document gives no tested trading rules or performance evidence.

Tags

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