How It Trades
- Measure the 90-bar trailing return each bar, then smooth that momentum series itself with a 20-bar weighted moving average: momentum's own recent norm.
- Buy when momentum crosses above its average: the trend is not just up, it is strengthening, accelerating past its own recent pace.
- Sell when momentum crosses back below its average: the trend is decelerating. This fires before momentum ever turns negative, so exits come earlier than in the other momentum strategies, at the cost of more frequent trades.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// Momentum WMA Crossover — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("Momentum WMA Crossover", overlay=false,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
momentum = (close / close[90] - 1) * 100
smoothed = ta.wma(momentum, 20)
above = momentum > smoothed
enterNow = above and not above[1]
exitNow = not above and above[1]
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(momentum, "Momentum 90", color=#4d8dff)
plot(smoothed, "WMA 20", color=#e0a03a)
hline(0, "Zero", color=color.new(#8a92a0, 40), linestyle=hline.style_dashed)