Compounding momentum detector
Marks bars where recent one-minute moves run at least 1.15 times the earlier moves in the window.
The detector keeps the last `window` closes and works in dollar moves, not percentages. At least 60% of the consecutive moves must be larger (more positive) than the move before, and the first three moves in the window must net up. When both hold and the net move over the last three bars is at least `min_compound_factor` times the net move over the first three, the bar is marked and the ratio is its value.
How to read it
- Markers only, drawn on the candles. This indicator has no line and no pane.
- A marker means the last three bars pulled away from the first three in the window, and the moves were speeding up rather than just large.
- At default settings markers never appear on a falling window, so they mark upward pushes, not turns.
- Expect about 21 markers a day on SPY one-minute bars, on roughly 2.6% of bars.
What it outputs
- Compound factor
- Marks each bar where the last three moves run at least min_compound_factor times the first three; the value is that ratio.
When it fires
When the last three bars net up to at least 1.15 times the net move of the first three bars in the window, and at least 60% of the moves in the window are larger than the one before. The marker means the recent upward moves are speeding up within a window that already rose.
Settings
- window
- How many closes the look-back covers. Raising it compares the first and last three moves across a longer span, so markers track slower pickups; lowering it toward 5 reacts within a few minutes. Windows of 4 or fewer never fire at the default threshold.
- min_compound_factor
- Minimum last-to-first move ratio for a marker. Raising it (1.5) keeps only sharp pickups and marks fewer bars; lowering it toward 1 marks more. Below zero it also marks falling last moves. The 60% acceleration check always applies.
Pitfalls
- The ratio uses dollar moves, not percentages, so a near-flat start of a few cents can make the value explode. Read the marker, not the number.
- The name says compounding, but nothing checks exponential growth. It is a ratio of three-bar moves inside one window.
- Only default settings were measured (about 21 firings a day on a month of SPY one-minute bars). The try presets are untested.