This package includes the WST MTM lower indicator, The WST MTM candle painting upper study and two scanners (bullish and bearish) based off of the indicator. All downloads are below with a description of how the indicator is structured. See video at the bottom for setting it up.
WST MTM Lower Indicator
The WST MTM lower indicator is based on the momentum oscillator of the TTM squeeze, stacked EMAs and the distance between the trade price and the 21 EMA. I have included the “squeeze dots” as well. If you would like to know what the squeeze dots are you can check out this page. https://wstrades.com/ttm-squeeze/.
The length of the bars are the distance away from the 21 EMA. So if you have a very small bar above the zero line then you would know that the price is trading just above the 21 EMA. If you have a very long bar below the zero line then the stock is trading far below the 21 EMA. The indicator is fully customizable so if you trade an underlying that trades off of a certain moving average then you can change the zero line to represent that moving average instead of the 21 EMA.
The colors are very important and represent the following:
GREEN = The 8 EMA and 21 EMA are stacked bullishly and the momentum oscillator is moving in a positive direction (either below the zero line but moving up towards the zero line or above the zero line and trending higher). If you wanted to add more moving averages that could suggest a stronger trend, the code in already in the indicator and can be easily changed.
RED = The 8 EMA and 21 EMA are stacked bearishly and the momentum oscillator is moving in a down trend (either above the zero line but in a down trend or below the zero line and continuing down).
YELLOW = EMAs are stacked in the opposite direction as the momentum. Either bullish stacked EMAs but the momentum oscillator is in a down trend or the EMAs are stacked bearishly but the momentum oscillator is in an uptrend.
WST MTM Candle Paint
The WST MTM candle study will paint the candles on your chart to match the bar color of the WST MTM indicator making it easy to identify at a glance.
WST MTM Scanners
These scanners pull up tickers that have just turned green or red based on the WST MTM indicator.
Bullish Download: http://tos.mx/DrtcjRL
Bearish Download: http://tos.mx/9fy9FQV
How I trade using WST MTM
I use these tools to identify when a trend may be coming to an end. For example I will enter a trade using chart analysis and say I went long on stock XYZ because it has had a tendency to trade off of the 21 EMA and it just came down and hit the 21 EMA, I could go long and stay in the trade until the bars or candles turn yellow or cross the 21 EMA or zero line. My main use is when the color goes from green to yellow I can stay in the trade but it brings to my attention that the trend may be coming to an end so I can set my stop just under the 21 EMA.
I made these studies to fit my exact trading strategy and while you can customize the average type and length to fit your style, we here at WSTrades.com offer no guarantees on the accuracy of the indicators or information given. We are not responsible for any losses incurred by users of the tools or website. There is a high degree of risk involved with trading. TRADE SAFE!