Volume momentum confirmation
Marks bars where recent price and volume both rise steadily, not just on one noisy bar.
Each bar it keeps the last 10 closes and the last 5 volumes, turns neighboring values into percent changes, and averages them. For price, that average change must be positive and at least the momentum threshold (1.2 by default) times the spread of those changes; volume must pass the same test on its own changes. The flag is true only on bars where both tests pass. Despite the name, it does not measure acceleration; it checks that gains are steady.
How to read it
- Markers appear only on the candles where the flag is true; the indicator draws nothing in its own pane.
- A marker means the recent closes and the recent volumes both climbed steadily on that bar.
- Markers are rare: at default settings it fired once in roughly 20,000 one-minute SPY bars over one month, so treat a single marker as a rare event, not a regular signal.
What it outputs
- Steady price and volume rise
- True on bars where recent closes and recent volumes both rise steadily at once; false otherwise.
When it fires
Fires on the bar where both checks pass together: recent closes and recent volumes each average a gain above the threshold times their spread, and both averages are positive. It marks steady joint climbing at that bar, with no test of speed.
Settings
- price_window
- How many recent closes the price test reads. A longer window judges a longer stretch of gains; a shorter one reacts to a few bars. At 1 it can never fire, because there are no moves to compare.
- volume_window
- How many recent volume bars the volume test reads. A longer window asks volume to rise over a longer stretch; a shorter one reacts to a few bars. At 1 it can never fire, because there are no volume changes to compare.
- momentum_threshold
- How many spreads the average move must clear, for both price and volume. Raising it demands steadier moves and fires less often. At 0 or below only the sign of the average move matters, so it fires most often.
Pitfalls
- The name promises acceleration, but the test checks that gains are steady and clear their own noise, not that they are speeding up.
- The sample is small: at default settings the test reads 9 price moves and 4 volume moves, so a short lucky run can pass.
- Both checks must pass on the same bar. At defaults SPY passed that once in a month of one-minute bars, so the flag is nearly silent until you loosen it.