1. Introduction: Welcome to TidalSurge
Thank you for choosing the TidalSurge Momentum Strategy from Tidal Edge Investing. This training manual is written for traders who are new to momentum trading concepts and Pine Script strategies. This manual assumes you have received an invite-only version of TidalSurge and are exploring it for the first time. This guide will help you understand exactly how and why every input is configured.
TidalSurge looks for early signs of renewed strength — buying when momentum is just beginning to turn upward in a bull regime and selling when that momentum starts to fade or shows signs of exhaustion (via bearish divergence or extreme overbought conditions). It is a transparent, rule-based momentum system built around fast and slow EMAs that define market regime and detect momentum shifts.
What is Momentum Trading?
Momentum trading is based on the idea that assets that are already moving strongly in one direction tend to continue moving in that direction for a while. Instead of buying dips (mean reversion), momentum traders want to buy strength early and ride the wave as long as the trend remains healthy. TidalSurge uses a fast EMA and slow EMA to define the market regime and detect the earliest credible shifts back into bullish momentum.
How to Use This Manual
Each major input group used by TidalSurge is explained in its own chapter. For every setting you will learn:
What it does in plain English
Why the default/recommended value was chosen
How changing inputs affect your trading results and risk
Beginner-friendly starting points
By the end of this manual, you will understand the full logic flow (including signal priority order) and feel confident customizing TidalSurge for your own style. Appendix A lays out key concepts and terminology.
2. Getting Started: Adding & Configuring TidalSurge
Adding the Script to TradingView (Invite-Only Access)
TidalSurge is distributed as an invite-only Indicator. The script author (Tidal Edge Investing) grants access through TradingView’s secure invite system, and the script appears automatically in your account once you have been invited.
Open TradingView.com and log into your account (Essential plan or higher recommended for alerts and multiple indicators).
Open the chart of the asset you want to trade (e.g., TSLA, NVDA, SPY, or BTCUSD).
Click the Indicators button (the fx icon) located in the top toolbar above the chart.
In the Indicators dialog that opens, switch to the Invite-only tab on the left side.
Find TidalSurge - The Momentum Strategy (or the exact title provided with your invite) in the list and click it to add the strategy to your chart.
Once the strategy appears on your chart, click the small gear icon ⚙️ next to the strategy name (in the chart legend or data window) to open the full settings panel. This is where you will configure all the inputs described throughout this manual.
Initial Capital & Starting Shares
Starting Cash ($) — This is the simulated cash balance at the beginning of your backtest. Set it to match your actual or planned trading account size so position sizing calculations feel realistic. Default is set to $100,000. For smaller accounts, set this input to $10,000 or $25,000 and observe how the percentage-based sizing behaves.
Starting Shares — Use this if you already hold shares of the asset and want the backtest to continue tracking Profit and Loss (P&L) on that existing position. Most new users should leave this input at 0 for a clean "fresh start" simulation.
3. Order Entry & Exit Rules — Momentum Quality Filters
This section controls when TidalSurge is allowed to act. Because it is a momentum strategy, the filters are designed to confirm that strength is present (or fading) rather than just buying any green candle or selling any red one.
Momentum Candle Thresholds
Momentum Buy Candle Threshold (%) + Use Momentum Candle Filter (Buy) — Default: 0.0% enabled.
Requires the current candle to be up at least this percentage from open before a BUY is allowed. At 0%, the filter accepts any green or flat candle. Raising the input to 0.5-1.5% filters for stronger momentum candles only. This helps avoid buying weak, low-conviction green candles. Keep enabled for higher quality entries.
Momentum Sell Candle Threshold (%) + Use Momentum Candle Filter (Sell) — Default: 0.0% enabled.
Limits how strong the current candle can be before a SELL is blocked. Helps prevent selling into very strong upward momentum candles. Positive values (0.3-1.0%) add caution; A value of 0 allows sells on any candle.
Buy Restriction Modes (When to Allow Momentum Buys)
Only Buy Restriction (Momentum) — Options: Off / On Momentum Shift (Default) / On Bullish Cross / In Bull Regime
On Momentum Shift (Recommended Default): Requires the fast EMA to be turning upward AND price above the fast EMA. This is the earliest credible momentum signal.
On Bullish Cross: Requires the fast EMA to actually cross above the slow EMA. More confirmed but slightly later signal.
In Bull Regime: Allows buys whenever fast EMA > slow EMA (broadest). More signals but lower average quality.
Off: No extra restriction (Use with Caution).
Sell Restriction Modes & Fade Bars
Only Sell Restriction (Momentum) — Options: Off / On Bull Regime Fade (Default) / On Bearish Cross / In Bear Regime
On Bull Regime Fade is the core sell logic: the fast EMA has been declining for the chosen number of bars AND price is below the momentum line, while still technically in a bull regime. This catches early signs of momentum exhaustion before a full bearish cross occurs.
Fade Bars for Bull Regime Sell (Default: 2) — Controls how many consecutive bars the fast EMA must be declining to confirm a fade. 1 = most aggressive (more signals, more noise) 2 = balanced/recommended 3 = most conservative (fewer but higher-quality signals)
Bearish RSI Divergence Sell (Independent Signal)
Use Bearish RSI Divergence as Independent Sell Signal (Default: ON) + Lookback (30) + Min RSI (65).
This is a powerful optional feature. A bearish divergence occurs when price makes a higher high but RSI makes a lower high — classic warning that upward momentum is weakening even while price is still rising. When enabled, this can trigger an independent SELL (subject to being in a bull regime and RSI being high enough). Bearish divergence acts as an early warning system. The lookback controls how far back the script looks for the highest high/RSI pair. Higher Min RSI ensures divergence happens in clearly overbought territory.
4. Trade Size — Position Sizing
Percentage-based sizing (Default: 5%) is strongly recommended because it scales automatically with your account growth or shrinkage. Pyramiding is set to 3, allowing you to add to positions on successive momentum shifts within a bull regime. Fixed dollar mode is available if you prefer consistent trade quantities regardless of portfolio size.
5. Market Momentum Line — The Core Engine
TidalSurge’s core is built around two EMAs that together define both the regime and the earliest momentum shifts.
Fast EMA (21) and Slow EMA (55)
Fast EMA Length (Default: 21) — Reacts quickly to price changes. Used to detect momentum shifts (fast EMA turning up) and bullish/bearish crosses.
Slow EMA Length (Default: 55) — Defines the overall market regime. When fast EMA > slow EMA, this is a “bull regime.” When fast < slow, this is a “bear regime.”
The script also plots a smoothed “Momentum Line” (average of the two EMAs, further smoothed) that acts as a dynamic reference for fade detection. The colored ribbon fill between fast and slow EMA visually shows the current regime (white tint when bullish, blue tint when bearish).
6. Enhancements — Filters & Risk Management
RSI-Based Momentum Filters
Min RSI for Buy on Shift (Default: 52) — Prevents buying when RSI is still deeply oversold. Requires at least some momentum recovery before allowing a momentum buy.
Max RSI for Sell on Fade (Default: 68) — Prevents selling too early while RSI is still elevated. Only allows fade sells once RSI has cooled somewhat.
Extreme Overbought RSI (force sell) (Default: 72) — Safety valve. If RSI exceeds this level while still in a bull regime, a sell is forced immediately regardless of other conditions. This protects against parabolic exhaustion moves.
ADX Trend Prevention
Prevent Buys in Strong Downtrends (Default: OFF) — Optional. Blocks buys if ADX shows a strong downtrend. Useful for conservative traders who want to avoid catching falling knives.
Prevent Sells in Strong Uptrends (Default: ON) — Highly recommended. Blocks normal momentum sells during powerful uptrends so profits can run. ‘Bearish divergence’ and using ‘Top As Additional Sells’ can still fire.
7. TidalBeacon Top/Bottom Overlay (Optional High-Priority Layer)
TidalSurge includes optional Top/Bottom signals that can act as high-priority entries and exits. When enabled, these provide opportunistic mean-reversion style buys at deep oversold extremes and aggressive profit-taking sells at overextended tops, with their own dedicated position sizing and filters.
Trigger Bottom Buy
Use Bottom as Additional BUY Signal (Default: OFF) + RSI Oversold level + % of Cash to deploy.
When enabled, a cross below the lower Bollinger Band + RSI oversold can trigger a BUY with highest execution priority (fires before normal momentum buys). Good for aggressive mean-reversion entries inside an overall momentum framework, especially when combined with the ADX ranging filter.
Trigger Top Sell
Use Top as Additional SELL Signal (Default: OFF) + RSI Overbought level + % of Shares to sell.
When enabled, a cross above the upper Bollinger Band + RSI overbought triggers a SELL with highest priority (before divergence or normal momentum sells). Excellent for taking profits at parabolic extremes. If enabled, the default input is 33% which means you scale out 1/3 of the position at the extreme high — locking in profits while leaving 2/3 to run if the move continues. This is often smarter than selling 100% at the first top.
Top/Bottom Filters & Visuals
You can optionally apply a 200 EMA trend filter and an ADX ranging filter specifically to the Top/Bottom signals. Background highlights and labels help you visually identify when these extreme Top/Bottom conditions occur, even if you leave the Additional BUY/SELL signal toggles disabled. The Bollinger Bands themselves can also be visually plotted directly on the main chart.
8. Backtesting Controls & Mobile Portfolio Tracker
Date Range Controls
The Start Year/Month/Day and End Year/Month/Day inputs let you define exactly which period the strategy is active whether backtesting or actively trading. Once actively trading, set the start date to the current date and the end date to a date at least several years in the future to allow for buy and sell alerts to be generated and your portfolio to be tracked accurately.
The following are tips essential for proper backtesting:
Test with enough data and trades — Use long historical periods (ideally multiple years) that include bull, bear, and sideways regimes. Aim for hundreds of trades rather than a handful—small samples produce misleading results that don’t hold up live.
Validate with out-of-sample testing — Optimize parameters on one period (in-sample), then test on later unseen data (out-of-sample). This helps detect overfitting. Walk-forward testing is even better for robustness.
Mobile Portfolio Tracker
When enabled (Default), a compact table appears in the top-right corner of the chart showing Current Shares, Current Cash, and TidalSurge Strategy ROI %. This is invaluable when viewing charts on the TradingView mobile app, where the full Data Window is harder to access. The tracker updates in real time as the backtest progresses.
9. How TidalSurge Executes Trades — Signal Priority Order
Understanding execution priority is critical because multiple conditions can be true on the same bar.
Buy Priority
Use Bottom as Additional Buy (if enabled) — Highest priority. Fires first if conditions are met.
Normal Momentum Buy (Momentum Shift or Bullish Cross, subject to all filters and restrictions).
Sell Priority
Use Top as Additional Sell (if enabled) — Highest priority. Fires first.
Bearish RSI Divergence Sell (independent signal, if enabled and conditions met).
Normal Momentum Sell (Bull Regime Fade, Bearish Cross, or Bear Regime, subject to filters).
This priority system ensures that extreme Top/Bottom conditions are respected first, divergence acts as an early warning, and normal momentum logic fills in the rest. All trades respect date range, static price filters, ADX trend prevention (where enabled), candle thresholds, and whole-share + commission simulation.
10. Best Practices & Recommended Starting Settings
Recommended Starting Configuration
For your very first backtests on any new symbol, here are some conservative defaults:
| Setting | Recommended | Why |
|---|---|---|
| Entry / Exit % | 3% - 5% | Manage drawdowns |
| Buy Restriction | On Momentum Shift | Earliest quality signal |
| Sell Restriction + Fade Bars | On Bull Regime Fade + 2 bars | Balanced fade detection |
| Prevent Sells in Strong Uptrends | Enabled | Let winners run |
| TidalBeacon Signals (Bottom/Top) | OFF initially | Learn visuals first |
Paper Trade & Regime Awareness — Momentum strategies shine in strong trending bull markets and can struggle or whipsaw in prolonged sideways/choppy conditions. Use the visual ribbon and regime labels to develop a feel for when the market is in a healthy bull regime versus when it is not. Paper trade for at least 1–2 months across different regimes before going live.
Use Complementary Approaches — Many traders apply momentum strategies similar to TidalSurge, on assets showing clear uptrends or strong momentum, while using mean-reversion thinking on the same or different assets when they enter ranging or pullback phases. The two styles often complement each other.
Review Divergence & Extreme Top/Bottom Signal Behavior — After backtests, study how often bearish divergence and the extreme Top/Bottom signals trigger, and whether they improve or hurt overall results on your chosen assets. These are powerful but can also cause premature exits in very strong trends.
Appendix A: Core Trading Terminology
This glossary covers both general terms and TidalSurge-specific concepts. Understanding these terms will make you a much more effective user of the strategy.
Momentum Trading
A style that seeks to capitalize on the continuation of existing price trends. Traders buy assets showing strong upward momentum and sell when momentum shows signs of weakening. TidalSurge is a rules-based momentum system focused on early shifts within bull regimes.
Bull / Bear Regime
Defined in TidalSurge by the relationship between the fast EMA and slow EMA. When fast > slow = Bull Regime (momentum buys allowed, normal sells restricted). When fast < slow = Bear Regime (momentum buys blocked, broader sell permission).
Momentum Shift (Early Signal)
When the fast EMA turns upward (fastEMA > fastEMA[1] and fastEMA[1] <= fastEMA[2]) while price is above the fast EMA. This is often the earliest credible sign that downward momentum is exhausted and bullish momentum is returning.
Bullish / Bearish Cross
Bullish Cross = fast EMA crosses above slow EMA. Bearish Cross = fast EMA crosses below slow EMA. These are more confirmed regime change signals than a simple momentum shift.
Bull Regime Fade
The core sell condition in TidalSurge: the fast EMA has been declining for the chosen number of consecutive bars (Fade Bars) AND price is below the momentum line, while this is still technically in a bull regime (fast > slow). This detects early exhaustion before a full bearish cross.
Bearish RSI Divergence
Price makes a higher high but RSI makes a lower high within the lookback window. Bearish divergence is a classic warning that upward momentum is weakening even as price continues to rise. TidalSurge can use this as an independent sell signal when enabled.
Extreme Overbought Force Sell
When RSI exceeds the Extreme Overbought level (Default: 72) while still in a bull regime, TidalSurge forces a sell immediately. This acts as a safety valve against parabolic exhaustion moves.
RSI (Relative Strength Index)
A momentum oscillator (0-100) that measures the speed and change of recent price movements. Readings below ~30-35 indicate oversold conditions (potential buy); above ~65-70 indicate overbought (potential sell). TidalCore Crypto uses RSI as a confirmation filter and for divergence detection.
ADX / +DI / -DI (Average Directional Index)
ADX measures trend strength (not direction). Values above 25 typically indicate a strong trend. +DI and -DI show whether bulls or bears are in control. TidalCore Crypto uses these to block trades that would fight a strong trend.
EMA (Exponential Moving Average)
A type of moving average that gives more weight to recent prices. The Market Wave basis is built from a double EMA. The optional 200 EMA trend filter uses a long-term EMA to determine overall market direction bias.
Backtesting
Running a trading strategy on historical data to see how it would have performed. TidalCore Crypto’s backtest engine simulates realistic fills, 0.1% commission, and fractional unit rounding. TidalCore Crypto also tracks cash, crypto holdings, cost basis, and P&L in real time.
ROI (Return on Investment)
Percentage change in portfolio value from the starting equity. TidalCore Crypto shows Strategy ROI, Buy & Hold ROI, and Do Nothing ROI side-by-side in the Data Window so you can see whether active trading added value.
Data Window
The right-side panel in TradingView that shows all the TidalCore Ribbon values from a script. TidalCore Crypto outputs a rich set of portfolio metrics (including Current Crypto with 6-decimal precision), benchmarks, and trade volume numbers here for detailed analysis.
Mobile Portfolio Tracker
A compact table displayed in the top-right corner of the chart (when enabled) showing Current Crypto, Current Cash, and Strategy ROI %. Especially useful on the TradingView mobile app where the full Data Window is harder to access.
Appendix B: Important Disclaimers & Legal
Educational Purpose Only
This training manual and the TidalSurge tool are provided strictly for educational, research, and informational purposes. They are not intended as, and shall not be construed as, financial, investment, trading, tax, or legal advice of any kind.
No Guarantee of Performance
Past performance of any trading strategy, including backtested results shown by TidalSurge, is not indicative of future results. Markets can and do change. A strategy that performed well historically may lose money in live trading due to changing volatility, liquidity, news events, execution differences, and many other factors.
Risk of Loss
Trading stocks, ETFs, options, crypto, and other financial instruments involves substantial risk of loss and is not suitable for all investors. You should only trade with capital you can afford to lose entirely. Leverage, margin, and concentrated positions dramatically increase risk.
No Fiduciary Relationship
Tidal Edge Investing, its creators, and any distributors of this script or manual have no fiduciary duty to you. You are solely responsible for all trading decisions made using this or any other tool.
Third-Party Platforms
TradingView, brokers, exchanges, and data providers are independent third parties. Tidal Edge Investing makes no warranties regarding the accuracy, completeness, or timeliness of data or the functionality of any platform.
By using TidalSurge or this manual, you acknowledge that you understand these risks and agree that Tidal Edge Investing shall not be liable for any losses, damages, or claims arising from your use of the strategy or reliance on this document.