> For the complete documentation index, see [llms.txt](https://docs.synergysignal.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.synergysignal.io/momentum.md).

# 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.