I was wondering how Jurik's Velocity works and after some time I created a little bit different Velocity.
What is this? Everybody heard about the momentum indicator. The classic momentum shows the difference between the current price and the price N periods ago. How far in the past the comparison is made is up to the trader.
When the indicator reaches extremely high (low) values and then turns in the opposite direction it can be considered a sell (buy) signal. Sometimes it is better than waiting for the 0-line crossovers. Another way is to use the indicator to find out divergences with the price.
What's wrong with it? The classical momentum indicator produces many misleading values and false signals due to its jagged nature. To remove noise and smooth out its line users apply the different moving averages. No matter how cool is your average - you always add a lag. And the lag will seriously decrease the performance of the momentum indicator.
All of this can be avoided using a special smoothing technique.
Settings
Period (default: 30)
Price Source (default: hlc3)
Peaks Highlighting (default: false)
Velocity with peaks highlighting
NOTE: This is not Bullish/Bearish Phases. Phases is a pure volume-based indicator and doesn't use the price to measure the dominance.
I attached some screenshots to show you how it works with other instruments so, you can compare it with Jurik' Velocity.
Hello, sorry to bother you with this, but i'm trying to replicate your indicator in Javascript, for a custom trading bot i built. I want to "measure" the velocity of the asset for not getting stuck with slow movement.
Could you please open source your indicator, or give some hints on how to achieve these values (i'm using AI and machine learning to find profitable assets) so i can feed them to my model so it can filter out slow assets?