Momentum

Measuring Market Intent

Momentum is the engine of price movement. While many indicators lag, Momentum Impulse identifies the initiation of a move. It highlights candles that display exceptional strength relative to recent history, often signaling the arrival of institutional volume.

Impulse Candles

Not all large candles are significant. Some are just noise. We filter for true "Impulse Candles" based on specific criteria:

1. Explosive Range: The candle's body must be significantly larger than the previous candle's body (based on a dynamic ratio).

2. Clean Closure:

   • Bullish Impulse: Must close near its high, with very little upper wick.

   • Bearish Impulse: Must close near its low, with very little lower wick.

• Visual: These candles are highlighted on your chart, alerting you that a strong move has begun.

Impulse Zones (Support & Resistance)

The origin of an impulsive move is a critical level. Institutions often defend these areas if price returns to test them.

• Bullish Impulse Zone: Drawn from the Open/Low of a Bullish Impulse Candle.

  • Usage: Potential Support. Look for long entries on a retest.

• Bearish Impulse Zone: Drawn from the Open/High of a Bearish Impulse Candle.

  • Usage: Potential Resistance. Look for short entries on a retest.

Zone Management

To keep your chart clean, we manage these zones automatically:

• Dimming (Mitigation): When price touches a zone, it dims. This tells you the zone has been tested and may be weaker.

• Deletion (break): If price closes beyond the zone (invalidating it), the box is removed immediately.

• Count: You can limit the number of active momentum boxes on the chart (e.g., last 3) to avoid clutter.