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Adaptive Momentum Pressure (AMP)

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🔹 Adaptive Momentum Pressure (AMP)

A hybrid momentum oscillator that adapts to volatility and trend dynamics.

AMP measures the rate of change of price pressure and automatically adjusts its sensitivity based on market volatility.
It reacts faster in trending markets and smooths out noise during consolidation — helping traders identify genuine momentum shifts early while avoiding whipsaws.

🧠 Core Concept

AMP fuses three elements into one adaptive momentum model:

Normalized Momentum (ROC) – captures directional acceleration of price.

Adaptive Smoothing – the smoothing length dynamically contracts when volatility rises and expands when it falls.

Directional Bias – derived from the short-term EMA slope to weight momentum toward the prevailing trend.

Combined, these form a pressure value oscillating between –100 and +100, revealing when momentum expands or fades.

⚙️ How It Works

Calculates a normalized rate of change (ROC) relative to recent volatility.

Adjusts its effective length using the ATR — more volatile periods shorten the lookback for quicker reaction.

Applies a custom EMA that adapts in real time.

Modulates momentum by a normalized EMA slope (“trend bias”).

Produces a smoothed AMP line with a Signal line and crossover markers.

🔍 How to Read It

Green AMP line rising above Signal → Building bullish momentum.

Red AMP line falling below Signal → Fading or bearish momentum.

White Signal line = smoothed confirmation of trend energy.

Green dots = early bullish crossovers.

Red dots = early bearish crossovers.

Typical interpretations:

AMP crossing above 0 from below → early bullish impulse.

AMP peaking near +50–100 and curling down → potential momentum exhaustion.

Crosses below 0 with red pressure → bearish confirmation.

⚡ Advantages

✅ Adaptive across all markets and timeframes
✅ Built-in trend bias filters false signals
✅ Reacts earlier than RSI/MACD while reducing noise
✅ No manual retuning required

🧩 Suggested Use

Combine with structure or volume tools to confirm breakouts.

Works well as a momentum confirmation filter for entries/exits.

Optimal display: separate oscillator pane (not overlay).

Use it responsibly — AMP is an analytical tool, not financial advice.

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