Momentum Thrust Counter
- Indicators
- Version: 1.0
- Activations: 5
# Momentum Thrust Counter - Counting thrusts beyond threshold
*Category: Momentum | Difficulty: beginner | Window: separate window below the chart | Markets: Universal (Forex, indices, commodities, crypto, stocks) | Suggested timeframes: M15, M30, H1, H4, D1*
## Short description
> Counts bars moving beyond an ATR multiple and reports the net balance. The total line separates calm from battle, both of which show a balance near zero.
### Overview
Most bars on a chart carry no information: they are oscillations within the market normal range, the background breathing of liquidity. The bars that matter are those breaking that normality. Momentum Thrust Counter defines a thrust as a close to close change exceeding a multiple of the current ATR, counts how many bullish and bearish thrusts occurred in the window and reports the net balance. Alongside the balance, a second line shows the total number of thrusts regardless of sign. This second piece of information is what makes the indicator different from a plain directional counter: a balance of zero with a total of zero describes a sleeping market, a balance of zero with a total of twenty describes a fierce battle between buyers and sellers.
### How the calculation works
1. For each bar the ATR over the InpAtrPeriod window is computed: it is the reference defining what is normal right now.
2. The thrust threshold is InpThrustAtr times the ATR, so it adapts automatically to different volatility phases.
3. Over the last InpWindow bars the number of close to close changes exceeding the threshold upwards and downwards is counted.
4. The net balance is the difference between the two counts and is the histogram value.
5. The total is their sum and is the value of the overlaid line, measuring overall market activity.
6. The histogram is coloured only when the balance exceeds InpNetLevel, filtering out marginal imbalances.
### How to use it
- Always read both quantities together: the balance says which side, the total says whether anything is happening at all.
- High balance with high total is the best configuration: many thrusts, almost all in the same direction.
- Balance near zero with a high total flags a conflict phase: high volatility without direction, the worst for trading.
- A total falling towards zero indicates compression: it often precedes a volatility expansion and hence a breakout.
- Lower InpThrustAtr on high timeframes, where changes are wide, and raise it on low timeframes to filter noise.
### Who it is for and on which timeframes
It is the simplest of the category and requires no technical background: counting how many bars exceed a threshold is elementary. Precisely for that reason it works well as a first filter even for less experienced traders. It works on all timeframes from M15 up. It is also useful to experienced traders as a market activity measure, information no directional oscillator provides and which helps decide whether it is worth sitting in front of the chart.
### Practical example of reading a signal
On EURUSD M30, during the Asian session, the balance sits at zero and the total line at one: over the last thirty bars only a single thrust exceeded the threshold. The market is asleep and there is nothing to do. At the London open the total jumps to fourteen within a few bars while the balance stays at two: there is a lot of activity but still no prevailing direction, the classic contested open. An hour later the balance rises to nine with a total of thirteen: nearly all thrusts are now bullish. The histogram turns green, and this is the configuration to trade in direction, not the previous one.
## Input parameters
| Parameter | Default | Description |
|---|---|---|
| `InpWindow` | 30 | Number of bars over which thrusts are counted. Short windows react quickly, long windows describe the character of the session. |
| `InpAtrPeriod` | 30 | ATR period defining the threshold. Keeping it similar to the counting window keeps the reference consistent. |
| `InpThrustAtr` | 0.80 | Minimum size of a thrust, expressed in ATR. Low values count nearly every bar, high values only exceptional events. |
| `InpNetLevel` | 4 | Net balance beyond which the imbalance is deemed relevant and the histogram is coloured. |
## Advantages / strengths
- An elementary, immediately understandable concept, with no formulas to interpret.
- The ATR threshold self-adapts to different volatility phases with no need for recalibration.
- The total line provides a market activity measure that directional oscillators do not offer.
- Very light to compute, no repaint, suitable even for charts with a great many bars.
## Limitations and warnings
- The count ignores thrust size: a bar barely above the threshold counts the same as one exceeding it fivefold.
- The result depends sensitively on InpThrustAtr: changing that value completely changes the reading.
- Being a count of integers, the histogram moves in steps and on short windows looks jumpy.
- It provides no price level and no indication of the expected size of the move.
**No repaint:** values printed on a closed bar are never modified afterwards.
**Disclaimer.** This product is a technical analysis tool, not an automated trading system, and it offers no profit guarantee whatsoever. Financial markets carry the risk of total loss of the invested capital. Past performance is not indicative of future results. Every signal must be confirmed with your own analysis, a money management plan and prior testing on a demo account. The author is not responsible for trading decisions taken on the basis of this indicator.
## Suggested tags / keywords for MQL5
`momentum`, `thrust`, `atr`, `volatility`, `activity`, `session filter`, `no repaint`, `counter`
