The following oscillator is a twist on momentum, incorporating a 2nd derivative "acceleration" to help determine changes in momentum. Both are plotted directly accessing previous series values rather than using a moving average.
The script has an option to divide so the formula is d(Price)/d(Time), like a derivative. The script also provides options for the user to use their price source, volume, or a combination of price and volume.
Credit: This script utilizes the "color gradient framework" tutorial by LucF (PineCoders) to create user-adjustable gradient visuals.
Definitions
"1st Derivative - Momentum" - Momentum is most commonly referred to as a rate and measures the acceleration of the price and/or volume of a security.
"2nd Derivative - Acceleration" - Acceleration is the rate of change of momentum.
Value Added
This script may help the trader to assess directional changes in momentum easier.
This script also plots using [] previous series values rather than using a moving average function. To my knowledge, I was unable to find one that does this for "2nd derivative", so it had to be created.
Hi have you tried using RSI as metric of change...meaning RSI is a good momentum tracker but I would like to know the rate at which its increasing or decreasing,
Not entirely sure if you can do this in the mobile app, but using either the tradingview app or web app, do this: Add RSI indicator to your chart Add Momentum & Acceleration to your chart In the settings for Momentum & Acceleration, change the source from "close" to "RSI: RSI"
Now this indicator will track the RSI value from the RSI indicator
stinkbug
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@animecummer, thanks going to test it out, i got it setup. Question, so momentum and acceleration are plotted together, but when i hide one or other it completely changes the chart. is it because they are being divided by each other?
stinkbug
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@stinkbug, can you give a quick how you look at it?