Jerk Indicator
- Indicatori
- Versione: 1.0
In physics, "Jerk" is the third time-derivative of position, with acceleration being the second derivative and velocity the first derivative. In technical analysis, the first derivative of price is the price momentum, with the second derivative,acceleration, being seldom used and the third derivative virtually unknown. The magnitude frequency response of a digital differentiator is a positive-slope straight line passing through zero frequency. Therefore, every instance of a digital signal differentiation results in increasing the power of the frequency dependence, the amplification of high frequency components, the diminishing low frequency components, in addition to reducing the lag by half a sampling period (bar). In my previous indicators True Momentum and Top Gun Oscillators, I provided some of the best momentum oscillators available. For these oscillators, the high-frequency noise attenuation is large enough to warrant the calculation and use of the acceleration. In particular, one proprietary oscillator (RLP LPD) introduced by this developer and provided in Top Gun Oscillators , has a high enough attenuation to enable the useful calculation of the derivative of acceleration itself, which is the jerk. The causality order of the three dynamical parameters is this: the jerk leads acceleration, which in turn leads velocity (momentum), which in turn leads the price itself. So having all these advanced signals may help predict price motion.
The first buffer of the indicator (exportable via iCustoms) is a signal buffer. The signal is +10 if the selected parameters (momentum, acceleration, jerk) fit a particular polarity combination criterion. For example, in screenshot 1, the signal is +10 (Blue) if both acceleration and jerk are positive valued, and -10 (Red) if both are negative valued.
The Acceleration and Jerk oscillator lines are not drawn to scale. They are magnified for visibility.
By the way, if you are wondering what the fourth, fifth and sixth derivatives are called, they are"snap" "crackle" and "pop" !!!
I tried your indicators. In addition to being very good and in my opinion innovative, they are also free. Thank you. What I don't understand, other than momentum, is how the Jerk (pink oscillator) can be used for trading signals.