Momentum regime
Sorts momentum into -1 to 2 from three rate-of-change readings; sat at 1 on every SPY bar tested.
MomentumRegime takes three rate-of-change (ROC) readings, short, mid and long, and counts how many are above zero. It returns 2 when all three are positive, ordered short above mid above long, and the short reading is above 0.005. It returns 1 when at least two are positive, 0 when one is, and -1 when none are. It has no settings of its own, so its meaning depends entirely on the three ROC series fed into it.
How to read it
- The line sits in its own pane below the price and only takes the values -1, 0, 1 or 2.
- 2 means all three ROC readings are positive, ordered short above mid above long, with short above 0.005. 1 means at least two are positive. 0 means one is. -1 means none are.
- In the SPY sample it held at 1 for the whole month, so the 2, 0 and -1 readings never appeared.
What it outputs
- Momentum regime
- A momentum class from -1 to 2, set by how many of the three rate-of-change readings are positive and how they are ordered.
Pitfalls
- It has no lookback or threshold of its own and no smoothing, so the value changes on any bar where the ROC inputs change sign or order.
- In the SPY sample it returned 1 on every bar, so check the three ROC inputs before trusting the regime.
- The word accelerating only means short above mid above long in one snapshot; it does not measure how fast momentum is changing.