Momentum accelerator
A 0–10 score for accelerating momentum; the top readings follow a dip that rebounds, and it never shows direction.
The score adds points from three checks on one-minute closes, scales the total for volume, and caps it at 10. With default windows of 3, 8 and 20 bars, the cascade check adds up to 4 when the close 3 bars ago is below the close 8 bars ago, which is below the close 20 bars ago, and the close now is above all three. That is a dip turning into a rebound; a steady climb earns 1.5 from this check. The acceleration check adds up to 3 when the fast change rises faster over the last few bars, whatever its sign, so a fall losing speed also scores. The size check adds up to 2 when the fast change exceeds 1.5%, 2% or 3%; volume above the 10-bar average then multiplies the total by 1.15 or 1.3.
How to read it
- The line sits in its own pane below the price, between 0 and 10, and is never negative.
- Near 0 means no check scored. The median bar reads about 1, and above about 3.5 is the top 5% of SPY bars in the sample.
- High readings tend to come as price turns up out of a short dip, so the line jumps as the candles rebound.
- A high reading says momentum is accelerating, not which way; check price direction before acting on it.
What it outputs
- Momentum score
- Points from the cascade, acceleration, size and volume checks, capped at 10. Zero means no check scored, which also covers the warm-up bars.
Settings
- window_fast
- Lookback in bars for the short price change that feeds every check. Lower reacts to the last few minutes and the score jumps on single bars; higher smooths the score and reacts later to a rebound.
- window_mid
- Lookback for the middle price change, the middle leg of the cascade check. It sets which past close a dip is measured against, so it changes which dips the top score catches. The shape assumes fast below mid below slow.
- window_slow
- Lookback for the longest price change, and the warm-up length: the first window_slow bars read 0 while history fills. Raising it demands a rebound over a longer dip and delays the first readings; lowering it makes the cascade test local.
Pitfalls
- The score has no sign. The acceleration check also scores a fall that is losing speed, so a falling market can still read above zero.
- The size thresholds (1.5%, 2%, 3% over the fast window) are fixed in the code and suit fast-moving symbols. On SPY one-minute bars, such moves within a few bars are rare, so this check seldom adds points.
- Zero has two meanings: the warm-up bars before the slow window fills, and bars where no check scored. Do not read zeros at the start of a run as quiet markets.