Exponential target
Take-profit multiplier that climbs from 1 plus base_profit to 1 plus max_profit as momentum reaches 10.
The indicator takes one momentum score, divides it by 10 and caps the result at 1. It raises that fraction to the exponent, scales it between base_profit and max_profit, and returns 1 plus the result, so the output is a profit multiplier and not a price. Any score of 10 or more gives the ceiling, and scores below zero are not clamped.
How to read it
- The line sits in its own pane below the price, near 1.0, because it is a multiplier and not a price level.
- A value of 1.10 is a 10% profit target, the ceiling with default settings. The floor at zero momentum is 1.02.
- With defaults on SPY one-minute bars it stayed at 1.10 on every bar, so a flat line means momentum was at or above its cap.
- Higher values mean stronger momentum and a larger profit target. The indicator draws no entries or exits.
What it outputs
- Profit target
- Take-profit multiplier: 1 plus a profit fraction that rises with momentum, from 1 + base_profit at zero to 1 + max_profit at 10 and above.
Settings
- base_profit
- Profit fraction at zero momentum: the floor is 1 plus this, 1.02 by default. Raising it lifts the whole curve. Lowering it pulls the floor toward 1.0, and below 0 the floor falls under 1.0.
- max_profit
- Profit fraction at momentum 10 and above: the ceiling is 1 plus this, 1.10 by default. Raising it lifts the top of the curve. Set below base_profit, the curve runs downward as momentum rises.
- exponent
- Shape of the climb from floor to ceiling. 1 is a straight line. Above 1 the target stays near the floor until momentum is high. Below 1 it rises early at low momentum. At 0 it sits at the ceiling for every score.
Pitfalls
- The divisor 10 and the cap at 1 are fixed in code, so no parameter moves where the curve tops out. With defaults on SPY one-minute bars the value was 1.10 on every bar, so momentum never dropped below 10 in that sample.
- Negative momentum is never clamped, in Python or in the native body. Python returns a complex number for a fractional exponent on a negative score, and a negative exponent raises ZeroDivisionError at exactly 0.
- The catalog allows base_profit down to -3 and max_profit down to -11, which gives multipliers below zero. Most of those ranges are not usable as profit targets.