Momentum Bias Index [AlgoAlpha]

Description:

The Momentum Bias Index by AlgoAlpha is designed to provide traders with a powerful tool for assessing market momentum bias. The indicator calculates the positive and negative bias of momentum to gauge which one is greater to determine the trend.

Key Features:

Comprehensive Momentum Analysis: The script aims to detect momentum-trend bias, typically when in an uptrend, the momentum oscillator will oscillate around the zero line but will have stronger positive values than negative values, similarly for a downtrend the momentum will have stronger negative values. This script aims to quantify this phenomenon.

Overlay Mode: Traders can choose to overlay the indicator on the price chart for a clear visual representation of market momentum.

Take-profit Signals: The indicator includes signals to lock in profits, they appear as labels in overlay mode and as crosses when overlay mode is off.

Impulse Boundary: The script includes an impulse boundary, the impulse boundary is a threshold to visualize significant spikes in momentum.

Standard Deviation Multiplier: Users can adjust the standard deviation multiplier to increase the noise tolerance of the impulse boundary.

Bias Length Control: Traders can customize the length for evaluating bias, enabling them to fine-tune the indicator according to their trading preferences. A higher length will give a longer-term bias in trend.