OPEN-SOURCE SCRIPT
Sector Momentum
This indicator shows the momentum of a market sector. Under the hood, it's the MACD of the number of stocks above their 20 SMA in a specific sectors. The best insight it gives is to tell if the market is doing a sector rotation or having a full blown correction.
Users have the options to choose a specific sector out of the 11 sectors:
XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY or show all them them by adding multiple indicators.
Use this indicator similar to MACD to look for momentum acceleration, deceleration and turn in a sector. More importantly, users can open up the indicator for all sectors and then compare between each.
Examples:
1. When we see momentum slows down in XLP and turn of XLK, it's a sign of sector rotation from consumer staple to tech. Money is going from defensive to riskier assets. Market is leaning towards risk-on mode. Stocks in tech have higher probability to outperform those in consumer staple.
2. When we see momentum subside across all sectors all at once or one by one, particularly both XLP, XLK/XLY, we'd expect market breadth is taking a hit across all sectors. This is not a sector rotation. A short to mid term market correction or drawdown is very likely.
Users have the options to choose a specific sector out of the 11 sectors:
XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY or show all them them by adding multiple indicators.
Use this indicator similar to MACD to look for momentum acceleration, deceleration and turn in a sector. More importantly, users can open up the indicator for all sectors and then compare between each.
Examples:
1. When we see momentum slows down in XLP and turn of XLK, it's a sign of sector rotation from consumer staple to tech. Money is going from defensive to riskier assets. Market is leaning towards risk-on mode. Stocks in tech have higher probability to outperform those in consumer staple.
2. When we see momentum subside across all sectors all at once or one by one, particularly both XLP, XLK/XLY, we'd expect market breadth is taking a hit across all sectors. This is not a sector rotation. A short to mid term market correction or drawdown is very likely.
Script de código aberto
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Script de código aberto
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.