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:

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.
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).

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