EMA Momentum Script

The download and this preview resolve to the same reviewed file. SHA-256: b5f17a80480b558b225ae63d82e862119a24164bcbe0df2892a6587dca972b63

-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW EMA Momentum v1.0.0
--
-- Combines an EMA (20) with the Momentum indicator (20), as in the related
-- article. Momentum is the close minus the close N candles ago, so crossing zero
-- means price is now above or below where it was N candles back. The EMA shows
-- which side of the average price closed. The article allows the two events to
-- happen up to 3 candles apart.
--
-- HIGHER: Momentum crosses above zero and a candle closes above the EMA, both
--         events within the last 3 candles, with both conditions true now.
-- LOWER:  Momentum crosses below zero and a candle closes below the EMA, both
--         events within the last 3 candles, with both conditions true now.
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW EMA Momentum",
    short_name = "IQOW EMA MOM",
    overlay = true
}

input_group {
    "1. EMA and Momentum",
    ema_period = input (20, "EMA period", input.integer, 2, 300),
    momentum_period = input (20, "Momentum period", input.integer, 2, 200),
    event_window = input (3, "Max candles between the two events", input.integer, 1, 5)
}

input_group {
    "Display and advice",
    ema_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    ema_color = input { default = "#FFD166", type = input.color },
    ema_width = input { default = 2, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

trend_ema = ema (close, ema_period)
-- Momentum = close minus the close N candles ago (official Momentum indicator).
momentum_value = close - close [momentum_period]

local ema_now = get_value (trend_ema, nil)
local ema_previous = get_value (trend_ema [1], nil)
local momentum_now = get_value (momentum_value, nil)
local momentum_previous = get_value (momentum_value [1], nil)
local close_now = get_value (close, nil)
local close_previous = get_value (close [1], nil)

local data_is_ready =
    get_value (close [ema_period], nil) ~= nil and
    ema_now ~= nil and
    ema_previous ~= nil and
    momentum_now ~= nil and
    momentum_previous ~= nil and
    close_now ~= nil and
    close_previous ~= nil

-- Events on this candle.
local momentum_up = data_is_ready and momentum_previous <= 0 and momentum_now > 0
local momentum_down = data_is_ready and momentum_previous >= 0 and momentum_now < 0
local price_over_ema = data_is_ready and close_previous <= ema_previous and close_now > ema_now
local price_under_ema = data_is_ready and close_previous >= ema_previous and close_now < ema_now

momentum_up_event = conditional (momentum_up)
momentum_down_event = conditional (momentum_down)
price_over_ema_event = conditional (price_over_ema)
price_under_ema_event = conditional (price_under_ema)

-- True when the event happened on this candle or one of the previous candles.
local function happened_recently (event_series)
    for age = 0, event_window - 1 do
        if get_value (event_series [age], false) then
            return true
        end
    end
    return false
end

-- Both events inside the window, and both conditions still true now. The setup
-- fires on the candle that completes the pair.
local completes_pair_up = momentum_up or price_over_ema
local completes_pair_down = momentum_down or price_under_ema

higher_setup = conditional (
    data_is_ready and completes_pair_up and
    close_now > ema_now and momentum_now > 0 and
    happened_recently (momentum_up_event) and happened_recently (price_over_ema_event)
)

lower_setup = conditional (
    data_is_ready and completes_pair_down and
    close_now < ema_now and momentum_now < 0 and
    happened_recently (momentum_down_event) and happened_recently (price_under_ema_event)
)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if ema_visible then
    plot (trend_ema, "EMA", ema_color, ema_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "EMA MOM HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "EMA MOM LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end