Velocity Cross AI

This indicator is basically a zero-line momentum oscillator with built-in buy/sell crossover signals, designed to behave like a smoothed “pressure gauge” for price direction.

📊 What the indicator does

It works in two layers:

1. 📈 Main Oscillator (Subwindow line)

The yellow line (buffer 0) is a custom Fisher-style normalized momentum value.

It is built from:

  • Highest close over a period
  • Lowest close over a period
  • Mid price (Open + Close)/2
  • Recursive smoothing (previous values influence current value)

👉 What it tells you

  • Above 0 → bullish pressure
  • Below 0 → bearish pressure
  • Crosses of zero → potential trend shifts

So it behaves like:

  • RSI-like momentum
  • Fisher Transform-like turning signal
  • Smoothed trend oscillator

🔔 2. Arrow Signals (Main chart)

The arrows are generated when the oscillator crosses the zero line:

🟦 BUY Arrow

Triggered when:

  • Oscillator moves from below 0 → above 0

📍 Plotted:

  • Below the candle (supporting bullish shift)

🔴 SELL Arrow

Triggered when:

  • Oscillator moves from above 0 → below 0

📍 Plotted:

  • Above the candle (indicating bearish shift)

🧠 Logic summary

The system is essentially:

“When market pressure flips from bearish to bullish (or vice versa), mark it with an arrow.”

So it is a:

  • Trend reversal detector
  • Momentum flip indicator
  • Zero-cross strategy tool

⚙️ Key features

  • Uses a period-based range (default 18) to measure price extremes
  • Uses recursive smoothing to reduce noise
  • Signals are based on zero-line crossover
  • Works best in:
    • Trend markets
    • Swing setups
    • M15 – H4 timeframes

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