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# Velocity Pro (Indicator)
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## 1. Summary
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**Velocity Pro** is a dual-purpose kinematics indicator. It separates the "Directional Impulse" from the "Raw Activity" of the market. This distinction is crucial for identifying market states: Trend vs. Chop.
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## 2. Concepts & Methodology
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We distinguish between two physical concepts applied to price action:
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### A. Velocity (The Vector)
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* **Definition:** The rate of change of position with respect to a frame of reference (ATR). It has **Magnitude** and **Direction**.
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* **Formula:** `(Close[i] - Close[i-N]) / (N * ATR)`.
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* **Represents:** The net displacement. How far did the price actually get?
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* **Visualization:** Colored Histogram.
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* **Green:** Fast pumping up.
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* **Red:** Fast dumping down.
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### B. Speed (The Scalar)
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* **Definition:** The magnitude of the rate of change of position. It has **Magnitude** only.
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* **Formula:** `Mean(Abs(Close[k] - Close[k-1])) / ATR`.
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* **Represents:** The total path length traveled. How much energy was spent?
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* **Visualization:** Gold Line.
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## 3. Interpretation (The Delta)
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The relationship between the **Histogram (Velocity)** and the **Line (Speed)** tells the true story:
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1. **Strong Trend (Efficiency):**
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* Velocity is High (Green/Red bars).
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* Speed is High (Gold line).
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* **Velocity ≈ Speed.** (The line rides the top of the bars).
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* *Meaning:* Every tick contributed to the move. High conviction.
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2. **Choppy/Volatile (Inefficiency):**
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* Velocity is Low (Gray bars near 0).
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* Speed is High (Gold line soaring).
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* **Gap between Velocity and Speed.**
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* *Meaning:* The market is running around like crazy but getting nowhere. **Do NOT trade breakouts here.** Expect stop hunts.
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## 4. Parameters
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* `InpVelPeriod`: Lookback window (Default: 3 for M5 Trigger).
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* `InpATRPeriod`: Normalization basis (Default: 14).
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* `InpThreshold`: Level for "High Velocity" coloring (Default: 1.0).
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* `InpShowSpeed`: Toggle the Scalar Speed line (Default: true).
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