OPEN-SOURCE SCRIPT
Normalized Velocity [Loxx]
Updated
Velocity (which is often called a "smoother momentum" since it is much smoother than momentum without lagging at all) with an addition of ATR normalization
Since velocity is (even when normalization is applied) is not an indicator with fixed bounds, this indicator is uses floating levels for what is usually called overbought and oversold levels (+ a floating "zero" line is added). Something that would look like a "fixed levels" is easily achieved if you use long floating levels period in which case those levels are quite similar to fixed levels.
This indicator can be used like any momentum indicator (in that case recommended coloring mode is to use either slope coloring or "zero" middle level crossing coloring) or it can be used as a "trending" indicator in which case it is better to use coloring on outer level cross, and longer calculation periods are advised in that case.
Included:
Since velocity is (even when normalization is applied) is not an indicator with fixed bounds, this indicator is uses floating levels for what is usually called overbought and oversold levels (+ a floating "zero" line is added). Something that would look like a "fixed levels" is easily achieved if you use long floating levels period in which case those levels are quite similar to fixed levels.
This indicator can be used like any momentum indicator (in that case recommended coloring mode is to use either slope coloring or "zero" middle level crossing coloring) or it can be used as a "trending" indicator in which case it is better to use coloring on outer level cross, and longer calculation periods are advised in that case.
Included:
- Bar coloring
- 3 signal variations w/ alerts
- Loxx's Expanded Source Types
- Alerts
Release Notes
Fixed two major errors.Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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