EdgeFlow: Momentum Ribbon

Thought for 11s
EdgeFlow: Momentum Ribbon Indicator
Overview
EdgeFlow: Momentum Ribbon is a versatile momentum-based trading indicator for TradingView, developed by @jay555b on X. This overlay tool combines a simple EMA ribbon for trend identification with a selectable oscillator (Stochastic RSI or Regular Stochastic) for detecting overbought/oversold conditions, all enhanced by higher timeframe (HTF) logic and price confirmation for robust entry signals. It's designed to help traders spot potential momentum shifts and trend continuations in various markets and timeframes, such as stocks, forex, or cryptocurrencies.
The "meshup" (mashup) of components—EMA crossovers, oscillator extremes, HTF filtering, and strict price-based confirmation—creates a multi-layered system that reduces false signals common in single-indicator strategies. EMAs provide the core trend bias, the oscillator adds momentum sensitivity, HTF ensures alignment with broader market structure, and the price close condition (e.g., closing above previous high for longs) acts as a final filter for conviction. This integration aims to capture "edge flows" where momentum aligns with trend, making it suitable for swing trading, scalping on lower timeframes, or confirming entries in trend-following systems. Note: This is a technical tool for educational purposes only; it does not provide financial advice, guarantees of profitability, or trading recommendations. Past performance is not indicative of future results, and users should backtest and use at their own risk, in compliance with TradingView's house rules.
Key Features
• EMA Ribbon: A visual band between fast (9-period) and slow (21-period) EMAs, filled green for bullish trends (fast > slow) or red for bearish, offering an at-a-glance trend overview.
• Selectable Oscillator: Choose between Stochastic RSI (for RSI-smoothed momentum) or Regular Stochastic (matching TradingView's default formula), with customizable lengths and smoothing.
• Setup and Confirmation Signals: Plots tiny squares for "setups" (oscillator crosses at extremes aligned with EMA trend) and triangles with "L"/"S" labels for confirmed entries (setup + HTF close + price break).
• Higher Timeframe (HTF) Integration: Processes logic on a user-defined HTF (or chart TF if blank), with a "max opposite-stack bars" tolerance to allow minor counter-trend bars before disarming signals.
• Persistent Arming Logic: Setups "arm" the system, persisting until confirmed or invalidated, preventing rapid flipping in choppy markets.
• Alerts: Built-in conditions for bullish/bearish setups and confirmations, with clean messages for easy integration into TradingView alerts.
How It Works
• EMA Trend Logic: The fast EMA (default 9) is compared to the slow EMA (default 21) to determine bullish (fast > slow) or bearish trends. This forms the ribbon's color and biases all signals—bullish setups require a bullish EMA, and vice versa.
• Oscillator Calculation:
o Stochastic RSI: Computes RSI (default 14 on close), then applies Stochastic (default length 8, %K smoothing 3, %D smoothing 3) to it, creating a bounded oscillator sensitive to relative strength momentum.
o Regular Stochastic: Uses high/low/close sources (defaults unchanged for accuracy), with %K length (8), %K smoothing (3), and %D smoothing (3), exactly matching TradingView's built-in Stochastic for consistency.
o Shared levels: Overbought (80) for bearish setups (crossover above), Oversold (20) for bullish setups (crossunder below).
• Setup Conditions: A bullish setup occurs on an oversold crossunder during a bullish EMA trend; bearish on overbought crossover during bearish EMA. These arm the system persistently.
• Confirmation Logic: On HTF bar close, confirm if armed, trend-aligned, within max opposite bars (default 0 for strictness), and price confirms (close > previous high for long, close < previous low for short). This meshup filters noise: EMAs ensure trend context, oscillator spots extremes, HTF adds multi-TF confluence, and price break demands immediate strength.
• Projection and Plotting: Signals project onto the chart's TF from HTF, plotting only on new HTF bars for clarity. Ribbon fill uses semi-transparent green/red based on trend.
• Why This Meshup?: Isolated indicators often fail in ranging or volatile markets—e.g., EMAs lag, oscillators whipsaw. By meshing them:
o EMAs provide directional bias to avoid counter-trend trades.
o Oscillator adds timing at extremes, catching pullbacks in trends.
o HTF reduces lower-TF noise, ensuring signals align with bigger-picture structure.
o Price confirmation (close beyond prior bar's extreme) adds a candlestick-like filter for momentum conviction, mimicking breakout strategies. This creates a "flow" of edges: trend + momentum + structure + price action, potentially improving signal quality over standalone tools. It's inspired by classic momentum strategies but customized for modern volatility.
All calculations use request.security for HTF data with lookahead off, ensuring real-time accuracy without repainting.
Settings and Customization
Inputs are grouped for ease:
1. EMA Settings:
o Fast EMA Length: Period for fast EMA (default: 9).
o Slow EMA Length: Period for slow EMA (default: 21).
2. Oscillator Selection:
o Oscillator Type: "Stochastic RSI" (default) or "Regular Stochastic".
3. Stochastic RSI Settings (active when selected):
o RSI Source: Input source (default: close).
o RSI Length: RSI period (default: 14).
o Stoch RSI Length: Stochastic length on RSI (default: 8).
o %K Smoothing: Smoothing for %K (default: 3).
o %D Smoothing: Smoothing for %D (default: 3).
4. Regular Stochastic Settings (active when selected):
o High/Low/Close Sources: Defaults to high/low/close (do not change for accuracy, as per tooltip).
o %K Length: Period for Stochastic (default: 8, min 1).
o %K Smoothing: Smoothing for %K (default: 3, min 1).
o %D Smoothing: Smoothing for %D (default: 3, min 1).
5. Shared Oscillator Settings:
o Overbought Level: Threshold for bearish setups (default: 80).
o Oversold Level: Threshold for bullish setups (default: 20).
6. HTF Settings:
o Higher Timeframe: Blank uses chart TF; otherwise, specify (e.g., "1D").
o Max Opposite-Stack Bars: Tolerance for counter-trend bars while armed (default: 0; higher allows more flexibility).
No additional plots or tables; all visuals are shapes and fills for minimal chart clutter.
Usage Tips
• Trend Trading: Use the ribbon color as your primary filter—enter longs only in green, shorts in red. Confirmed triangles ("L"/"S") signal entries; setups (squares) as early warnings.
• Timeframe Strategy: Set HTF to 1-2 levels higher (e.g., 15m chart with 1H HTF) for confluence. Increase max opposite bars in trending markets to catch pullbacks.
• Oscillator Choice: Stochastic RSI for smoother, RSI-biased signals in volatile assets; Regular Stochastic for price-based purity in ranging markets.
• Alert Integration: Set up TradingView alerts for setups (potential watches) and confirmations (entries). Messages are concise for notifications.
• Combination Ideas: Pair with volume indicators or support/resistance for exits. Backtest on your asset/timeframe to optimize lengths.
• Chart Compatibility: Works on any chart type; signals plot small to avoid obstruction.
Limitations
• Reactive Nature: Signals confirm after HTF close and price break, so they may lag in fast markets. Not ideal for ultra-short scalps.
• False Signals in Ranges: Like all trend-momentum tools, performs best in trending conditions; chop can produce disarmed setups without confirmations.
• No Repainting: Uses lookahead off, but HTF projection means signals appear on new bars—test live.
• Customization Risks: Changing source inputs (e.g., in Regular Stochastic) may break accuracy; stick to tooltips.
• Disclaimer: This indicator is for informational use only. Trading involves risk; consult professionals. Abiding by TradingView rules, no claims of profitability are made—results vary by market conditions and user strategy.