diff --git a/Indicators/MyIndicators/Quant/Velocity_Pro.md b/Indicators/MyIndicators/Quant/Velocity_Pro.md new file mode 100644 index 0000000..48b0450 --- /dev/null +++ b/Indicators/MyIndicators/Quant/Velocity_Pro.md @@ -0,0 +1,48 @@ +# Velocity Pro (Indicator) + +## 1. Summary + +**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. + +## 2. Concepts & Methodology + +We distinguish between two physical concepts applied to price action: + +### A. Velocity (The Vector) + +* **Definition:** The rate of change of position with respect to a frame of reference (ATR). It has **Magnitude** and **Direction**. +* **Formula:** `(Close[i] - Close[i-N]) / (N * ATR)`. +* **Represents:** The net displacement. How far did the price actually get? +* **Visualization:** Colored Histogram. + * **Green:** Fast pumping up. + * **Red:** Fast dumping down. + +### B. Speed (The Scalar) + +* **Definition:** The magnitude of the rate of change of position. It has **Magnitude** only. +* **Formula:** `Mean(Abs(Close[k] - Close[k-1])) / ATR`. +* **Represents:** The total path length traveled. How much energy was spent? +* **Visualization:** Gold Line. + +## 3. Interpretation (The Delta) + +The relationship between the **Histogram (Velocity)** and the **Line (Speed)** tells the true story: + +1. **Strong Trend (Efficiency):** + * Velocity is High (Green/Red bars). + * Speed is High (Gold line). + * **Velocity ≈ Speed.** (The line rides the top of the bars). + * *Meaning:* Every tick contributed to the move. High conviction. + +2. **Choppy/Volatile (Inefficiency):** + * Velocity is Low (Gray bars near 0). + * Speed is High (Gold line soaring). + * **Gap between Velocity and Speed.** + * *Meaning:* The market is running around like crazy but getting nowhere. **Do NOT trade breakouts here.** Expect stop hunts. + +## 4. Parameters + +* `InpVelPeriod`: Lookback window (Default: 3 for M5 Trigger). +* `InpATRPeriod`: Normalization basis (Default: 14). +* `InpThreshold`: Level for "High Velocity" coloring (Default: 1.0). +* `InpShowSpeed`: Toggle the Scalar Speed line (Default: true).