The indicator is calculated by subtracting the long-term from the short-term .
This pretty much resembles the moving averages calculation but without the smoothing of the histogram.
Can also be used to find divergences.
The background shows the main trend with higher time frame which can be set in the settings.
Aimed to use with Higher time frame (Double or more) but can also work with lower time frame.
How to use the indicator?
Green: Momentum of asset is positive and increasing.
Lighter Green: Momentum of asset is still positive but decreasing and can revert to negative momentum.
Red: Momentum of asset is negative and increasing.
Lighter Red: Momentum of asset is still negative but increasing and revert to positive momentum.
==Background Color - Main Trend==
Green: HTF (Higher time frame) momentum is positive.
RED: HTF momentum is negative.
Feel free to comment and Follow to stay updated with upcoming scripts: https://www.tradingview.com/u/dman103
NOTE: BARS ARE COLORED BY DEFAULT WITH HISTOGRAM COLORS! (Can be changed in settings)
Note: I am considering to make a NEW variation (V2) of this script, Follow me to get notified.
To write indicators or strategies you need to learn pine script and understand or learn technical analysis and price movement concepts. If you need me to write you your own unique custom made indicator, i can do that, but most likely it won't be free. Follow me, i release quite a lot indicators which are free to use.