momentum

What Is It?

The Momentum pillar is an RSI-based line (default 21-period) applied to the close price. It tracks the underlying directional strength of the asset and serves as the primary trend filter in the signal engine.

It appears as a purple line on the oscillator panel, with its moving average shown as a yellow line.

UI name: "Enable Momentum" in the settings panel. The line is labelled "Momentum" in the Style tab.

How It Works

The Momentum line measures the ratio of average gains to average losses over a lookback period. Values above 70 indicate overbought conditions; values below 30 indicate oversold conditions.

In Synergy Signal, the Momentum line is not just used for simple overbought/oversold readings — it is used to identify recovery and rejection patterns:

Long Condition (Momentum approves a long)

All four of the following must be true:

Condition	What It Checks
Recent low	Momentum dropped below the Momentum Oversold level (default 30) within the last 60 bars
Rising	Momentum line is currently rising for at least 2 bars
Above MA	Momentum line is above its own 14-period EMA
Not exhausted	Momentum is still below the Momentum Overbought level (default 70)

This pattern captures a bounce off oversold with confirmation of upward momentum — not just any Momentum reading.

Short Condition (Momentum approves a short)

Mirror logic:

Condition	What It Checks
Recent high	Momentum was above Momentum Overbought (default 70) within the last 60 bars
Falling	Momentum line is currently falling for at least 2 bars
Below MA	Momentum line is below its own 14-period EMA
Not exhausted	Momentum is still above Momentum Oversold (default 30)

The Momentum Moving Average

A 14-period SMA of the Momentum line is plotted as a yellow line (hidden by default in the Style tab — enable it under "Momentum MA"). It serves two purposes:

1. Visual reference for Momentum direction

2. Internal filter — Momentum must be above/below this MA to qualify for long/short signals

Chop Zone Interaction

When Block Chop Zone is enabled (State section), any bar where the Momentum line falls between Chop Zone Low (35) and Chop Zone High (65) is treated as a ranging environment — and no signals fire.

Example: If the Momentum line is at 50, the market is in equilibrium. No directional edge exists. The chop block prevents signals in this region.

The chop zone boundaries are shown as dotted white lines on the oscillator panel.

Momentum Filter (Advanced)

There is an optional secondary filter called the Momentum Trend Filter (Momentum Filter (Pivots) section in the UI). When enabled, it calculates the rate-of-change of the Momentum line, smooths it, and compares it to its own moving average. This creates a slow-moving "trend of the momentum":

• Momentum trending up → longs preferred

• Momentum trending down → shorts preferred

This filter appears as two additional lines on the oscillator when enabled (white and yellow). It is disabled by default and is most useful on higher timeframes (4H, Daily).

Settings (State Section in UI)

Setting	Default	Description
Enable Momentum	✅ On	Enables the Momentum pillar
Momentum Oversold	30	Level Momentum must fall below before a long recovery counts
Momentum Overbought	70	Level Momentum must rise above before a short rejection counts
Block Chop Zone	✅ On	Suppresses all signals when Momentum is between the chop boundaries
Chop Zone Low	35	Lower boundary of the chop dead zone
Chop Zone High	65	Upper boundary of the chop dead zone
Momentum Trend Filter	❌ Off	Enables the pivot-based trend direction gate

Tips

• Raising the Chop Zone boundaries (e.g., 40/60) creates a tighter filter — only signals in strongly trending Momentum conditions. Expect significantly fewer signals.

• Lowering the Oversold/Overbought thresholds (e.g., 25/75) requires a deeper extreme before the recovery pattern qualifies — higher conviction entries, but fewer of them.

• If you disable the Momentum pillar, the chop zone filter is also bypassed, and the indicator relies entirely on Expansion Wave, Volatility, and Order Flow.