Adaptive Momentum Oscillator [AMO]

# Adaptive Momentum Oscillator

## Description

**What it does:**
AMO measures buying vs selling pressure by weighting price changes with volume. It automatically adjusts smoothing based on market conditions - faster response in trends, more filtering in choppy markets.

**How it works:**
1. Calculates market efficiency (trending vs choppy)
2. Applies adaptive smoothing to volume
3. Measures volume-weighted bullish/bearish momentum
4. Outputs normalized 0-100 oscillator

**How to read:**
- Above 50 = Bullish momentum (blue zone)
- Below 50 = Bearish momentum (red zone)
- Above 60 = Overbought, watch for reversal
- Below 40 = Oversold, watch for bounce

**Signals:**
- ◆ Blue at 50: Bullish shift (potential long entry)
- ◆ Red at 50: Bearish shift (potential short entry)
- ▽ at 75: Overbought warning
- △ at 25: Oversold warning

**Settings:**
- Lookback Period: Lower = more signals, Higher = smoother
- Adaptation Period: Controls efficiency calculation speed

**Use as:** Trend confirmation, entry timing, or exit signals when reaching extreme zones.