OPEN-SOURCE SCRIPT
Sector Momentum
This indicator shows the momentum of a market sector. Under the hood, it's the MACD of the number of stocks above their 20 SMA in a specific sectors. The best insight it gives is to tell if the market is doing a sector rotation or having a full blown correction.
Users have the options to choose a specific sector out of the 11 sectors:
XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY or show all them them by adding multiple indicators.
Use this indicator similar to MACD to look for momentum acceleration, deceleration and turn in a sector. More importantly, users can open up the indicator for all sectors and then compare between each.
Examples:
1. When we see momentum slows down in XLP and turn of XLK, it's a sign of sector rotation from consumer staple to tech. Money is going from defensive to riskier assets. Market is leaning towards risk-on mode. Stocks in tech have higher probability to outperform those in consumer staple.
2. When we see momentum subside across all sectors all at once or one by one, particularly both XLP, XLK/XLY, we'd expect market breadth is taking a hit across all sectors. This is not a sector rotation. A short to mid term market correction or drawdown is very likely.
Users have the options to choose a specific sector out of the 11 sectors:
XLB, XLC, XLE, XLF, XLI, XLK, XLP, XLRE, XLU, XLV, XLY or show all them them by adding multiple indicators.
Use this indicator similar to MACD to look for momentum acceleration, deceleration and turn in a sector. More importantly, users can open up the indicator for all sectors and then compare between each.
Examples:
1. When we see momentum slows down in XLP and turn of XLK, it's a sign of sector rotation from consumer staple to tech. Money is going from defensive to riskier assets. Market is leaning towards risk-on mode. Stocks in tech have higher probability to outperform those in consumer staple.
2. When we see momentum subside across all sectors all at once or one by one, particularly both XLP, XLK/XLY, we'd expect market breadth is taking a hit across all sectors. This is not a sector rotation. A short to mid term market correction or drawdown is very likely.
Script open-source
Dans le plus pur esprit TradingView, l'auteur de ce script l'a publié en open-source, afin que les traders puissent le comprendre et le vérifier. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais la réutilisation de ce code dans une publication est régie par nos Règles. Vous pouvez le mettre en favori pour l'utiliser sur un graphique.
Vous voulez utiliser ce script sur un graphique ?
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.