Momentum Decay Field [BullByte]Momentum Decay Field : Physics-Based Momentum Energy Visualization
WHAT IS THE MOMENTUM DECAY FIELD?
The Momentum Decay Field (MDF) models price momentum as a decaying physical energy field using an exponential half-life model. MDF visualizes impulse energy on the price chart, detects exhaustion and energy divergence, and stores past exhaustion zones as reference levels. This is an informational visualization tool - not a buy/sell signal generator.
In nuclear science, every radioactive element emits energy that decays exponentially over time following a precise mathematical law. MDF applies this exact principle to price momentum.
Every strong price impulse carries kinetic energy. That energy does not last forever. It fades, weakens, and eventually depletes - just like a radioactive isotope losing its charge. MDF measures this process in real time and wraps price in a living energy field that expands, contracts, changes color, and ultimately signals exhaustion when the energy runs out.
This is not a moving average. Not an oscillator. Not a mashup of existing tools . It is a standalone physics engine that models momentum as a decaying energy system directly on the price chart.
THE CORE PHYSICS
The engine is built on the exponential decay formula from nuclear physics:
E(t) = E0 x exp(-lambda x t)
Where:
E(t) is the remaining energy at time t (measured in bars after the impulse)
E0 is the initial energy assigned to the impulse at the moment it occurs
lambda is the decay constant, derived from the half-life: lambda = ln(2) / Half-Life
t is the number of bars elapsed since the impulse
The half-life is the number of bars it takes for energy to decay to exactly 50% of its initial value. After two half-lives, 25% remains. After three, 12.5%. This creates the smooth, predictable decay curve visible in the dashboard sparkline.
When the adaptive half-life option is enabled, stronger impulses automatically receive a longer half-life. This means powerful moves with high volume and velocity sustain their energy field longer before exhausting, while weak impulses fade quickly. This mirrors real market behavior where institutional-grade moves carry momentum further than retail noise.
HOW IMPULSES ARE DETECTED
Not every candle qualifies as an impulse. The detection engine requires three conditions to be met simultaneously:
First , the candle body size (distance between open and close) must exceed a user-defined multiple of the Average True Range. This ensures only candles with genuine directional magnitude qualify.
Second , the total candle range (high to low) must also exceed an ATR-based threshold. This confirms the move had real price displacement, not just a wide body on a small-range bar.
Third , the body-to-range ratio must exceed 0.45. This filters out doji candles, pin bars, and high-wick candles that suggest indecision rather than conviction. Only candles where the body represents a significant portion of the total range pass through.
When an impulse qualifies, its initial energy (E0) is calculated by combining three factors: the normalized body magnitude (body size divided by ATR), a velocity boost (how fast price moved over the velocity window compared to average), and an optional volume boost (current bar volume relative to the rolling volume average). The result is capped at 5.0 to prevent extreme outliers from dominating the field.
THE ENERGY FIELD : WHAT YOU SEE ON THE CHART
The energy field is the colored aura that appears around price. It communicates the current momentum state through three visual properties:
Width: The field expands when energy is high and contracts as energy decays. At full energy, the field reaches its maximum width (controlled by the Max Field Width setting). As energy approaches zero, the field collapses to nothing. The width is always proportional to ATR so it adapts automatically to any instrument and timeframe.
Color: The field color morphs through three stages as energy decays. At high energy levels (above 55%), the field displays the bright directional color - the bullish theme color for upward impulses, the bearish theme color for downward impulses. As energy drops into the mid range (20-55%), the color transitions through warm amber, a universal warning tone indicating momentum is fading. Below 20%, the field shifts to cool gray, signaling that momentum is nearly spent. This color morphing happens smoothly and continuously on every bar.
Layering: The field is rendered in up to three concentric tiers - inner, mid, and outer - each progressively more transparent. The inner layer sits closest to price and is most opaque. The mid layer extends further with reduced opacity. The outer layer provides the widest aura at the lowest visibility. This creates a natural gradient that makes the field feel organic rather than blocky.
THREE VISUAL MODES
Clean mode renders no energy field at all. Only the signal markers (diamond, EXH, WEAK) and the dashboard appear on the chart. This mode is designed for traders who want a completely uncluttered chart and only care about the event markers and data panel. The momentum engine still runs in the background, powering the dashboard metrics and signals.
Standard mode activates the inner and mid field layers along with the energy spine - a central reference line running through the price that pulses with momentum. This is the default mode and provides a balanced view of the energy state without overwhelming the chart.
Full mode enables all three field tiers and adds candle tinting, where the candle bodies themselves are colored according to the current energy state and direction. High-energy bars glow with the directional color while depleted bars take on neutral tones. This mode provides maximum visual information for traders who want to see the full energy picture at a glance.
SIGNAL MARKERS : WHAT EACH ONE MEANS
Diamond (below bar for bullish, above bar for bearish): This marks the bar where a qualified impulse was detected and energy was injected into the system. It tells you that the decay physics engine has been activated or refreshed with new energy. Not every strong candle produces a diamond - the cooldown system prevents clustering by enforcing a minimum number of bars between consecutive impulse markers.
EXH (cross shape, amber color): This marks the bar where the energy ratio dropped below the exhaustion threshold. It means the momentum that was driving price has fully depleted according to the decay model. These exhaustion points often coincide with areas where price pauses, reverses, or enters consolidation. The anti-repeat filter ensures that the same directional exhaustion does not fire consecutively without a change in context - either a new direction must establish or sufficient time must pass.
WEAK (triangle shape, orange color): This marks an energy divergence. It appears when price makes a new high (for bullish) or new low (for bearish) but the impulse energy behind that move is at least 25% weaker than the previous impulse in the same direction. The price is extending but the fuel behind it is diminishing. This is a momentum divergence detected purely through the energy physics model, not through any traditional oscillator comparison. When WEAK fires on the same bar as an impulse, the diamond marker is automatically suppressed because the WEAK label already communicates that an impulse occurred - it simply carried less energy than its predecessor.
EXHAUSTION MEMORY ZONES
When an exhaustion event occurs, the indicator stores the price range of that bar as a memory zone. These zones are rendered as semi-transparent colored rectangles that extend from the exhaustion bar to the right edge of the chart. Bullish exhaustion zones use the bullish theme color and bearish exhaustion zones use the bearish theme color.
These zones represent price levels where momentum previously failed to sustain. They often act as areas of interest for future price action because they mark locations where aggressive directional energy was fully consumed. Fresh zones appear more opaque and gradually fade as they age, eventually becoming fully transparent after the user-configured fade period.
The Max Zones Displayed setting controls how many zones appear simultaneously. Only the most recent zones are shown. The Zone Fade Period controls how many bars a zone remains visible before disappearing. A three-stage memory management system runs continuously to prevent the zone array from growing unbounded on long-history charts: old zones beyond twice the fade period are pruned, the array is capped at a safe maximum, and the rendering loop enforces a drawing budget to stay within platform limits.
THE DASHBOARD : EVERY ELEMENT EXPLAINED
The dashboard uses a fully opaque dark background that renders identically on both light and dark chart themes. Every cell has its own explicit background color so nothing is inherited from the chart environment.
ENERGY: A 16-character progress bar showing remaining energy as a visual fill gauge, followed by the numerical percentage. The bar transitions from bright green (charged) through cyan (active) to amber (decaying) to orange (fading) to red (depleted).
PHASE: Displays the current energy state classification. CHARGED means energy is above 70% - momentum is strong and active. ACTIVE means 45-70% - momentum is present and sustaining. DECAYING means 20-45% - momentum is fading but not yet spent. FADING means energy is above the exhaustion threshold but below 20% - momentum is weak. DEPLETED means energy has fallen below the exhaustion threshold - the current cycle has exhausted.
The directional bias (BULL, BEAR, or FLAT) appears alongside the phase to show which direction the current energy cycle belongs to.
E0 INITIAL: Shows the initial energy magnitude that was assigned to the current impulse cycle when it began. The classification label (Extreme, Strong, Moderate, Light) provides quick context about how powerful the originating impulse was.
HALF-LIFE: Displays the current half-life in bars - how long it takes for energy to decay to 50%. When adaptive half-life is enabled, this value changes with each impulse based on its strength. The ELP (elapsed) counter shows how many bars have passed since the last impulse event.
ETA TO EXH: The predicted number of bars remaining until energy reaches the exhaustion threshold. This is calculated by solving the decay equation for time. The visual countdown bar (filled and empty blocks) provides a quick gauge of how close exhaustion is. When the current cycle has already exhausted, this displays EXHAUSTED in red.
DECAY CURVE: A 20-character sparkline that projects how energy will diminish over approximately three half-lives into the future. Each character represents a future time step. The curve reads from left (current moment, marked by NOW) toward the right (future). Tall blocks indicate high energy, dots indicate near-zero energy. This gives traders a visual preview of the entire remaining decay trajectory at a glance.
IMPULSES / EXHAUSTIONS / DIVERGENCES: Lifetime counters showing how many of each event type have occurred since the indicator was loaded on the chart. These provide context about the current session's activity level.
CHART EXAMPLE
Chart 1: ENERGY FIELD DYNAMICS & IMPULSE DETECTION
What This Chart Represents
This chart demonstrates the Momentum Decay Field's core visual engine showing how the energy field expands, contracts, and morphs in real-time as momentum cycles through impulse, sustain, and decay phases.
Key Visual Elements Highlighted:
1. ENERGY FIELD COLOR MORPHING The aura transitions through three distinct color phases as energy decays:
- Bright directional color (green for bullish, magenta for bearish) = High energy (>55% remaining)
- Warm amber/orange = Mid-energy decay phase (20-55% remaining)
- Cool gray = Low energy, momentum nearly spent (<20% remaining)
2. FIELD WIDTH DYNAMICS The energy band's width is directly proportional to remaining energy:
Wide, expansive field = Strong active momentum with high kinetic energy
Contracting field = Energy decaying, momentum losing strength
Thin/collapsed field = Minimal momentum, approaching exhaustion
Width scales with ATR to adapt across all instruments and timeframes
3. IMPULSE SIGNAL MARKERS (Diamonds) Pink/Green diamond markers identify the exact bars where qualified momentum impulses occurred:
Below price = Bullish impulse (upward energy injection)
Above price = Bearish impulse (downward energy injection)
Each diamond represents a new E0 (initial energy) assignment
Cooldown system prevents marker clustering during volatile periods
4. MULTI-CYCLE MOMENTUM VISUALIZATION The chart captures several complete momentum lifecycles:
Fresh impulses creating wide, bright energy fields
Progressive decay causing field contraction and color shift
Direction changes showing energy field polarity reversals
Energy stacking when same-direction impulses occur during active cycles
5.ENERGY DIVERGENCE SIGNAL (WEAK Marker)
Orange triangle with "WEAK" label
Triangle Up Position (Below Price):
Signal Type: Bearish energy divergence
Location: Bottom of the move after the bullish run
What It Detected: Price made a new low BUT the impulse energy behind that low was 25%+ weaker than the previous bearish impulse
CHART 2: EXHAUSTION SIGNALS, MEMORY ZONES & DASHBOARD DEEP DIVE
What This Chart Represents
This chart demonstrates the complete signal ecosystem of the Momentum Decay Field indicator, showcasing exhaustion detection, energy divergence, memory zones, and a full dashboard metrics breakdown. The chart captures a Solana (SOL/USDT) 15-minute timeframe showing the transition from strong bearish momentum through exhaustion to reversal with weakening energy.
1. ENERGY FIELD EVOLUTION
LEFT SIDE (Early Period - 1:00 to 10:00):
Bright magenta field = Strong bearish energy active
Wide field width = High momentum magnitude
Color morphing visible = Transition from bright magenta → brown/amber as energy decays
Field shows downtrend = Bearish impulse energy driving price lower
2. EXHAUSTION SIGNAL (EXH Marker)
Meaning: Momentum energy fully depleted - energy ratio dropped below 8% threshold
Location: Above the price bars (bearish exhaustion that preceded the bullish reversal)
Trigger Conditions Met:
Energy ratio < 0.08 (exhaustion threshold)
Minimum E0 > 0.5 (filters noise)
Minimum 3 bars elapsed since impulse
Cooldown period satisfied (8 bars between signals)
Anti-repeat filter passed (different direction or sufficient time gap)
What Happened Here: The strong bearish momentum (magenta field on left) progressively decayed until energy was fully consumed. The EXH marker fired at the exact bar where the decay equation calculated remaining energy had fallen below the 8% threshold.
3. EXHAUSTION MEMORY ZONE (Green Rectangle)
Large semi-transparent green box
Zone Type: Bullish exhaustion memory zone
Price Range: Captures the high-low range of the bar where bullish momentum exhausted
Color: Green with ~92% opacity at creation, fading over time
Border: Green border at ~78% opacity
Extension: Extends from exhaustion bar to right edge of chart (+10 bars beyond current)
Why It Matters: Price levels where momentum exhausted represent areas where directional energy was fully consumed. Market often "remembers" these levels as they frequently become magnets for future price action, areas of consolidation, or reversal zones.
4.ENERGY SPINE (Coloured Line Through Price Center)
Visible as dark line running through candle midpoints:
Technical Details:
Plots at hlc3 (average of high, low, close)
Color matches field color, opacity varies with energy level
Only visible when energy > 12%
Provides visual anchor showing momentum center of gravity
Style: Line breaks (plot.style_linebr) to avoid connecting across gaps
Purpose: The spine acts as a dynamic momentum equilibrium line. When field is wide, spine shows the center of energy distribution. As field contracts, spine becomes the last visible element before total energy depletion. Helps traders identify the core momentum flow without relying solely on field boundaries.
RECOMMENDED SETTINGS AND TIMEFRAMES
The default settings are calibrated for intraday trading on timeframes between 1 minute and 15 minutes. The indicator works on all timeframes and all instruments but the default parameters are optimized for the pace of day trading where impulse-to-exhaustion cycles complete within a visible chart window.
For scalping on 1-minute charts, consider reducing the Base Half-Life to 5-6 bars and the Impulse Lookback to 8-10. This makes the system more responsive to the rapid impulse cycles on lower timeframes.-
For swing trading on 1-hour or 4-hour charts, consider increasing the Base Half-Life to 12-16 bars and the Impulse Threshold to 2.0-2.5. This filters out intrabar noise and focuses on only the most significant impulses that drive multi-hour moves.
For daily charts, increase the Half-Life to 15-20 bars and enable Adaptive Half-Life to let strong institutional moves sustain their field across multiple sessions.
The Volume Weighting option is recommended to be kept enabled on instruments with reliable volume data (stocks, futures, major crypto pairs). For forex pairs where volume represents tick count rather than actual traded volume, consider disabling it or treating it as a secondary factor.
THOUGHT BEHIND THE INDICATOR
The concept originated from a simple observation: every momentum move in the market follows a lifecycle that mirrors energy decay in physics. A strong impulse starts with maximum energy, sustains for a period, then gradually loses force until it is fully spent. Traditional momentum indicators attempt to measure this through oscillators that lag behind price. MDF takes a fundamentally different approach by modeling the decay process itself using established physics rather than measuring its symptoms through lagging mathematical transformations.
The exponential decay model was chosen specifically because it matches the empirical behavior of momentum in financial markets. Momentum does not decay linearly - it holds relatively steady in the early phase after an impulse, then accelerates its decline as it approaches exhaustion. This is precisely the shape of an exponential decay curve and is why the half-life model produces a more accurate representation than a simple moving average or percentage-based countdown.
The energy divergence detection was added after observing that many trend reversals are preceded by a sequence of price extremes with diminishing impulse energy. The price chart shows strength (higher highs or lower lows) while the underlying energy tells a different story (each push requires less fuel). This hidden weakness is invisible on a standard chart but becomes immediately apparent when measured through the energy model.
WHAT THIS INDICATOR DOES NOT DO
This indicator does not generate buy or sell signals. It does not tell you when to enter or exit a trade. It does not predict future price direction. It measures and visualizes the current state of momentum energy to help you make more informed decisions within your own trading framework.
The exhaustion markers identify zones where momentum energy has depleted according to the physics model. Price may reverse at these zones, consolidate, or continue in the same direction after a new impulse injects fresh energy. The markers are informational reference points, not trading signals.
The energy divergence detection (WEAK markers) highlights instances where price extremes are driven by weakening energy. This is an observation about momentum quality, not a prediction about price direction. Divergences can persist through multiple cycles before price responds.
NON REPAINT BEHAVIOUR
Every calculation in this indicator uses only confirmed bar data (open, high, low, close, volume) from completed bars. No future data is referenced. No calculations change retroactively after a bar closes. The impulse detection, energy assignment, decay computation, exhaustion detection, and divergence detection all operate exclusively on confirmed historical data. What you see on a closed bar will never change.
DISCLAIMER
Trading financial instruments involves substantial risk of loss. Past energy states and exhaustion patterns do not guarantee future price behavior. This tool visualizes momentum dynamics to support analysis - it does not provide financial advice. The author assumes no responsibility for trading decisions or losses. Always employ proper risk management and never risk capital you cannot afford to lose.
- BullByte
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