Cycle Momentum Filter [JopAlgo]

Cycle Momentum Filter (CMF) [JopAlgo] — spot “when” to engage the market, on any timeframe

Markets breathe in cycles (expansion → contraction) while momentum and trend decide which moves actually travel. CMF [JopAlgo] is a compact filter that blends those ideas so you can answer two questions before you click:

Is this a good moment to take a trade? (cycle position)

If I take it, is there enough force behind the move to carry it? (momentum + trend)

CMF does not replace your levels—use it with your location tools (e.g., Volume Profile v3.2 and Anchored VWAP). It simply keeps you out of entries taken at the wrong part of the swing or against weak momentum.

(When you add screenshots: image #1 should label each sub-line and the green/yellow/red background; image #2 can show CMF turning green at VAL + AVWAP before a rotation back to POC.)

What you’re seeing (and how to read it at a glance)

CMF draws five sub-lines around a zero line, plus a background color:

Cycle Oscillator (blue): where you are in the swing. Above zero ≈ cycle crest side; below zero ≈ trough side.

ROC % (purple): short-term price acceleration. Above zero = positive momentum; below zero = negative.

MACD Histogram (orange): classic impulse measure (fast–slow EMA gap). Above zero = bullish impulse.

EWO (cyan): Elliott Wave Oscillator (EMA fast – EMA slow). Above zero = trend tilt up.

RSI-MA (gray, plotted as RSI−50): smoothed RSI relative to 50. Above zero = buyers have the relative strength.

Background color = the filter result:

Green → bullish window: cycle favors longs and momentum/trend/RS confirm.

Red → bearish window: mirror logic.

Yellow → neutral: at least one piece disagrees—do less, or wait for alignment.

For new traders: Every sub-line crossing above/below zero is a yes/no vote. Green happens only when all bullish checks are true; red when all bearish checks are true.

How CMF is built (plain-English version)

Cycle (DPO-style): CMF subtracts a displaced SMA from price to remove trend and expose the swing. Below 0 = you’re on the dip side of the cycle; above 0 = rally side.

Momentum (ROC): percent change over roc_length bars; tells you if price is actually accelerating.

Impulse (MACD hist): measures push from fast vs slow EMAs.

Trend tilt (EWO): broader drift via two EMAs (fast/slow).

Participation bias (RSI-MA): smoothed RSI relative to 50 (plotted as RSI−50 so its zero line matches the others).

The signal rules are strict AND conditions:

Bullish = cycle < 0 and ROC > 0 and MACD hist > 0 and EWO > 0 and RSI-MA > 0.

Bearish = cycle > 0 and ROC < 0 and MACD hist < 0 and EWO < 0 and RSI-MA < 0.

Otherwise Neutral.

This strictness is deliberate: it cuts a lot of low-quality entries.

Using CMF on any timeframe

The framework is the same—only your anchors/targets change as you zoom.

Scalping (1–5m)

Where: VP v3.2 VAL/VAH/LVNs or Session AVWAP.

When: take longs when CMF turns green on/after a dip to your level; shorts when it turns red on/after a pop into resistance.

Skip: yellow reads in the middle of the range; that’s chop.

Tip: on very fast pairs, require two consecutive green/red bars before entry.

Intraday (15m–1H)

Use CMF green to time pullbacks to AVWAP or VA edges in the trend direction.

In balance days, wait for CMF color + level alignment to fade back to POC.

If CMF flips yellow after entry, tighten risk; if it flips against you, consider exiting early.

Swing (2H–4H)

Treat first green after a higher-timeframe pullback to Weekly AVWAP or composite VAL as your A-setup.

If CMF stays green through the first pullback, consider adding; the opposite for red in downtrends.

Position (1D–1W)

Fewer, bigger decisions: CMF green at Monthly/Quarterly AVWAP or at composite VAL suggests rotation toward POC/HVNs; CMF red at VAH suggests mean-reversion lower.

If CMF can’t turn green/red at key retests, that’s valuable: the level likely won’t hold.

Entries, exits, and risk (simple rules)

Entry: trade at a level when CMF just flips to your side (green for longs / red for shorts).

Invalidation: if CMF reverts to yellow immediately, it’s a warning; if it flips to the opposite color, that’s your soft stop condition—tighten or exit unless higher-timeframe context argues otherwise.

Targets: use Volume Profile v3.2 (POC/HVNs) and AVWAP (mean) for logical destinations.

Don’t use CMF alone for stops; place them beyond the level or structure.

Settings that actually matter (and how to tune them)

Cycle Length (default 20): swing detection.

Shorter (10–14): quicker flips, better for scalps.

Longer (30–40): steadier cycle for swings/position.

ROC Length (default 10): momentum lookback.

Shorter: earlier yes/no, more noise.

Longer: slower, more selective.

MACD Fast/Slow (5/13) & EWO Fast/Slow (5/35): impulse and drift.

Increase slow values to calm false flips; decrease fast to react sooner.

RSI Length (14) & Smoothing (5): participation tilt.

Reduce smoothing for faster confirmation; increase to avoid whips.

Background on/off: keep it on while learning; once you’re comfortable, you can hide the background and read the lines against zero.

Tuning tip: If you trade only a few coins, optimize Cycle and ROC first; leave MACD/EWO defaults. Then decide how strict you want RSI (try RSI smoothing = 3 for faster reads).

What to look for (pattern cheatsheet)

Green at a dip-level (VAL/AVWAP) → rotate toward POC/HVN.

Red at a pop-level (VAH/AVWAP) → rotate down toward POC/HVN.

Color holds through the retest → continuation is more likely.

Color flips against the breakout → watch for failed break and reclaim.

Only one line disagrees (e.g., ROC < 0 while others > 0) → expect slower follow-through; consider waiting one bar.

Combining CMF with other [JopAlgo] tools

Volume Profile v3.2 [JopAlgo]:
Use VAH/VAL/POC/LVNs for where. CMF answers when.

Green at VAL → mean-reversion long to POC.

Red at VAH → fade to POC.

LVN breaks with green often travel quickly to the next HVN.

Anchored VWAP [JopAlgo]:

Reclaim of AVWAP + CMF turns green → higher-quality long; rejection + red → cleaner short.

Weekly AVWAP + CMF color is a reliable swing compass.

Cumulative Volume Delta v1 [JopAlgo] (CVDv1):

CMF says “now”, CVDv1 says “how good”.

Prefer CMF green when CVDv1 Alignment = OK, Imbalance strong, Absorption ≠ red.

If CMF flips green but CVDv1 shows Absorption (red), do not chase; look for a reclaim instead.

Common pitfalls CMF helps you avoid

Buying high in the cycle: CMF keeps longs to when the cycle is on the dip side and momentum/trend agree.

Forcing trades on yellow: yellow is your do-less mode—wait for alignment.

Ignoring flow at levels: CMF gives the window, but quality still matters; confirm with CVDv1.

Practical defaults to start with

Cycle 20 | ROC 10 | MACD 5/13 | EWO 5/35 | RSI 14 (smooth 5)

Works out of the box on 15m–4H.

For scalps, try Cycle 14 / ROC 7–9 / RSI smooth 3.

For daily swings, Cycle 30–34 / ROC 12–14.

Alerts (what they tell you)

Bullish Signal: CMF turned green (all bullish checks passed). Use it as a heads-up; still anchor the entry to VP/AVWAP.

Bearish Signal: CMF turned red. Same rule: wait for the level.

Open source & disclaimer

This indicator is published open source so traders can learn, tweak, and build rules they trust. Tools guide decisions; risk management decides outcomes.

Disclaimer — Not Financial Advice.
The “Cycle Momentum Filter [JopAlgo]” indicator and this description are provided for educational purposes only and do not constitute financial or investment advice. Trading involves risk, including possible loss of capital. [JopAlgo] makes no warranties and assumes no responsibility for any trading decisions or outcomes resulting from the use of this script. Past performance is not indicative of future results.