Momentum Cross

This indicator tracks momentum shifts using a 3-period EMA crossing above or below an 8-period EMA. It's simple, and quite effective as a momentum confirmation signal.

Signals:

• Cyan circles below bars - Bullish momentum (3 EMA crosses above 8 EMA)
  
• Red circles above bars - Bearish momentum (3 EMA crosses below 8 EMA)
  

Setups to Use:

1. V-Shaped Reversals: When price hits major support/resistance and shows rejection, the momentum cross confirms whether the reversal has legs or not. Helps separate real bounces from dead cat bounces.
   
   
2. One-Two Punch Pattern: My favorite high-probability setup: Initial cross shows momentum shifting, counter-move gets rejected quickly, second cross in original direction with follow-through.
   
   
3. Opening Range Breakout Confirmation: Use momentum crosses to confirm pullbacks or retests to key levels after opening range breakouts. The cross timing shows when the retest is holding and momentum is resuming in the breakout direction.
   
   
4. Fibonacci Support/Resistance: Momentum crosses at key Fibonacci levels (38.2%, 50%, 61.8%, 1.272%, and 1.618%) help confirm whether the level will hold or break. Particularly useful for timing entries at these widely-watched levels.
   

Settings:
Default 3/8 EMAs work well for most situations. Faster settings (2/5) for active markets, slower (5/13) for cleaner signals in strong trends.

Notes:
This works best when combined with key levels, volume, and market context. The cross timing is what matters - it shows when momentum is actually shifting, not just when price bounces.