Momentum Shift 5min MTF Engine¶

Source Code¶

View Source Code

Overview¶

This strategy is inspired by David Wyse's Right Line Trading approach, which uses multiple indicator panels to confirm trend and momentum alignment across timeframes before entering trades.

The Trade Setup Funnel¶

graph TD
    A[Daily and 5 min chart Align] --> B[Trade with trend - stock AND market]
    B --> C[SPY SUPER SYSTEM must align]
    C --> D[Relative Strength/Weakness]
    D --> E[Enter near Support/Resistance]
    E --> F[HIGH PROBABILITY ENTRY]

    style A fill:#87CEEB
    style B fill:#87CEEB
    style C fill:#5DADE2
    style D fill:#3498DB
    style E fill:#2874A6
    style F fill:#1B4F72,color:#fff

Each layer filters out lower-probability trades, leaving only the highest-conviction setups.

Key Components¶

1. Long Term Trend Panel¶

Shows price position relative to EMA across all timeframes:

Interpretation: - 🟢 All green = Strong uptrend across all timeframes - 🔴 All red = Strong downtrend across all timeframes - 🟠 Mixed = Choppy/transitional - avoid or reduce size

2. Multi-Timeframe Momentum Panel¶

Shows RSM (RSI of Normalized Relative Strength) state across timeframes:

Why RSM instead of just RS? - RSM smooths out noise in the relative strength reading - Crossing above/below 50 provides cleaner signals - More responsive to momentum shifts than raw RS

3. Relative Strength Values¶

Shows actual normalized RS values (0.00 to 1.00) for each timeframe:

4. LRSI Momentum Oscillator¶

Laguerre RSI with Fractals Energy for current timeframe momentum:

Entry Conditions¶

Long Entry Signal (Green Triangle Below Bar)¶

All of the following must be true:

1. ✅ All Timeframes Bullish (or minimum ⅗ if configured)
2. ✅ Price Above 15 EMA on current timeframe
3. ✅ Price Above VWAP (if VWAP filter enabled)
4. ✅ LRSI > 0.5 (momentum confirming)
5. ✅ LRSI < 0.8 (not overbought)

Short Entry Signal (Red Triangle Above Bar)¶

All of the following must be true:

1. ✅ All Timeframes Bearish (or minimum ⅗ if configured)
2. ✅ Price Below 15 EMA on current timeframe
3. ✅ Price Below VWAP (if VWAP filter enabled)
4. ✅ LRSI < 0.5 (momentum confirming)
5. ✅ LRSI > 0.2 (not oversold)

Visual Elements¶

On Price Chart¶

MTF Panel Table (Bottom Left)¶

┌────────────┬───────┬──────┬──────┬──────┬──────┐
│ TIMEFRAME  │ Daily │  4H  │  1H  │ 15M  │  5M  │
├────────────┼───────┼──────┼──────┼──────┼──────┤
│ LT Trend   │   ●   │  ●   │  ●   │  ●   │  ●   │
│ MTF Mom    │   ●   │  ●   │  ●   │  ●   │  ●   │
│ Rel Str    │ 0.72  │ 0.65 │ 0.58 │ 0.61 │ 0.55 │
│ LRSI       │   -   │  -   │  -   │  -   │ 0.63 │
└────────────┴───────┴──────┴──────┴──────┴──────┘

Alignment Summary (Top Right)¶

┌─────────────────────┐
│     ALIGNMENT       │
├─────────────────────┤
│ Bullish TFs:  4/5   │
│ LRSI:        Bull   │
│ Signal:      LONG ▲ │
└─────────────────────┘

Configuration Settings¶

General Settings¶

Relative Strength Settings¶

LRSI Settings¶

Trend Settings¶

Entry Settings¶

Support/Resistance Levels¶

Using Support/Resistance Levels¶

Daily Pivot Points¶

The strategy calculates standard pivot points from the previous day:

How to Use Levels¶

For Long Entries: 1. Wait for entry signal (all TFs aligned + LRSI > 0.5) 2. Best entries: Near S1, S2, VWAP Lower, or Previous Day Low 3. Targets: R1, VWAP, Previous Day High 4. Stop: Below the support level that triggered entry

For Short Entries: 1. Wait for entry signal (all TFs bearish + LRSI < 0.5) 2. Best entries: Near R1, R2, VWAP Upper, or Previous Day High 3. Targets: S1, VWAP, Previous Day Low 4. Stop: Above the resistance level that triggered entry

Key Levels Info Panel¶

The indicator displays a KEY LEVELS table on the right side showing: - All pivot levels (R3 → S3) with actual prices - Previous Day High (PDH) - Previous Day Low (PDL)

Use this panel to quickly identify where to place limit orders or set stop losses.

Trading Workflow¶

Pre-Market Checklist¶

1. 📊 Check Daily and 4H trend direction
2. 📈 Note key support/resistance levels
3. 📍 Mark previous day high/low
4. 🎯 Identify potential pivot points

During Market¶

flowchart LR
    A[Wait for Signal] --> B{All TFs Aligned?}
    B -->|Yes| C{Near S/R Level?}
    B -->|No| A
    C -->|Yes| D{LRSI Confirming?}
    C -->|No| A
    D -->|Yes| E[ENTER TRADE]
    D -->|No| A
    E --> F[Set Stop Below Pivot/VWAP]
    F --> G[Trail with 9 EMA or LRSI]

Exit Rules¶

Comparison: Daily vs 5-Min Strategy¶

Tips for Success¶

DO ✅¶

• Wait for all 5 timeframes to align before entering
• Enter near VWAP or pivot levels for better risk/reward
• Use tight stops - 5-min trades should be quick
• Scale out at first target, trail the rest
• Trade with market direction (check SPY/QQQ trend)

DON'T ❌¶

• Don't force trades when only 3-4 timeframes align
• Don't fight a strong trend on higher timeframes
• Don't hold losing trades - respect your stops
• Don't trade during low-volume periods (lunch hour)
• Don't ignore LRSI overbought/oversold warnings

Alerts¶

Related Indicators¶

• Momentum Shift RS Engine (Daily) - Daily chart version
• NRSI - Normalized Relative Strength Indicator
• NRMSI - Normalized RS Momentum Oscillator
• LRSI Momentum Panel - Standalone LRSI oscillator
• MTF Momentum Panels - Separate panel indicators

Changelog¶