Weekly Momentum Divergence Strategy

WMDS: Weekly Momentum Divergence Strategy

WMDS (Weekly Momentum Divergence Strategy) is an advanced trading system designed to identify market trends based on the flawless convergence of **high-timeframe trend strength** and **short-term momentum**, moving beyond superficial indicators. Unlike conventional systems, WMDS allows the trader to filter out chart noise and focus solely on the most reliable trend transitions, which have been **quantitatively validated**.

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I. CORE STRUCTURE AND KEY DIFFERENTIATORS
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WMDS fundamentally differs from other systems by avoiding the simplistic 'single indicator' or 'basic crossover' approach. The strategy validates the robustness of every signal using a **5-Factor Scorecard System** based on 100 points before initiating a position.

A. Multitimeframe Convergence Filter
1. Weekly Trend Focus: The system utilizes price averages derived from weekly data to establish the core trend. This process filters out noise from lower timeframes, minimizing the risk of false signals (whipsaws) caused by momentary price fluctuations.
2. Five-Criteria Scoring: The reliability of a trade signal depends on the cumulative score of five distinct criteria: Momentum Strength, Directional Confluence, Trend Core, Short-Term Convergence, and Channel Oscillator Bias.

B. How WMDS Operates (Mechanism)
WMDS analyzes the five criteria upon the close of every bar and calculates an **Entry Score**. When the calculated Score exceeds the user-defined **Minimum Entry Threshold (Default: 70 Points)**, the system automatically generates and executes a Long or Short position.

C. Distinctions from Other Systems (In-Depth Comparison)
* **Adaptive Risk Management:** Unlike bots that use rigid percentage-based stop losses, WMDS's ATR-based SL automatically expands or contracts according to market volatility. This ensures the risk of every position is adapted to current market conditions, performing better across various market regimes (ranging/trending).
* **Advanced Filtering:** Where simple Moving Average (MA) crossover strategies can rapidly change trend direction, WMDS's Weekly DMI and Momentum filters mandate that entries are only made on durable and established trends.
* **Clean and Minimalist Visuals:** The chart only displays two average lines and the colored fill between them. This eliminates unnecessary arrows, text, and complex lines, significantly reducing the **cognitive load** on the investor.

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II. COMPREHENSIVE USAGE AND SETTING DETAILS
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A. Position Management and Exit Rules

| Parameter | Default Value | Purpose and Risk/Reward Relationship |

| **Take Profit Percentage (TP)** | **33%** | A fixed target. More aggressive traders might lower this rate (e.g., 15%) to realize profits faster. |
| **Stop Loss (SL)** | **ATR Multiplier (3.5)** | Risk is set equal to 3.