Author: Andrey N. Bolkonsky
Candlestick Momentum Indicator (q-period Candlestick Momentum) by William Blau is described in the book "Momentum, Direction, and Divergence: Applying the Latest Momentum Indicators for Technical Analysis".
Momentum is the difference between the current price (for example, closing price of the bar) and the previous price (several bars ago). Momentum can be applied to any timeframe and period.
According to William Blau, the Candlestick Momentum is defined as a change of the price over the fixed interval:
cmtm = close - open
Candlestick momentum can be plus or minus in the sense that an up momentum is positive when the close is greater than the open; the reverse is true when the open is greater than the close giving a negative value to the downward momentum.
The definintion of Candlestick Momentum can be extended:
The definition of the q-period Candlestick Momentum
Candlestick Momentum Indicator by William Blau
The formula for calculation of Candlestick Momentum looks as follows:
cmtm(price1,price2,q) = price1 - price2[q-1]
The smoothed q-period Candlestick Momentum is calculated as follows:
CMtm(price1,price2,q,r,s,u) = EMA(EMA(EMA( cmtm(price1,price2,q) ,r),s),u)
Translated from Russian by MetaQuotes Software Corp.
Original code: https://www.mql5.com/ru/code/377
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