PriceMomentum on Eurodollar, Gold, and Bitcoin
PriceMomentum is a brand-new chart type that enhances price action with additional market features in order to help traders identify the real dynamics of demand and supply and to recognize significant levels of support and resistance.
Introducing the PriceMomentum Chart
PriceMomentum is created by G. Protonotarios and was published for the first time on TradingCenter.org.
The new chart type offers a new perspective to chart analysis and to the observation of historical price movements. It incorporates an algorithm that is designed to calculate price changes along with market volatility and the shifts of the periodic price momentum. In this first version, data is calculated on a daily basis.
PriceMomentum Algorithm
The PriceMomentum algorithm consists of three main components:
- Price Change (%)
- Intraday Volatility (%)
- Price Momentum Shifts (intraday basis)
Features:
- A PriceMomentum chart focuses on the daily percentage gains/losses, by ignoring the price itself
- It combines price changes with intraday momentum and intraday volatility
- A PriceMomentum chart uses the logarithmic scale as a logarithmic chart, however, it incorporates additional data
- It is more precise than a common line chart or a logarithmic chart, near key market tops/bottoms
- It is very sensitive to price momentum shifts, especially if these shifts are characterized by significant volatility (something common near market tops/bottoms)