Vol Based Momentum
Momentum indicator weighted by volume for confirmation of moves
A momentum indicator that incorporates volume into its calculation, giving more weight to price moves backed by strong volume participation. Helps distinguish between legitimate momentum shifts and low-volume noise.
The Concept
This study weights momentum calculations by volume, giving more significance to price moves backed by heavy participation. A move on strong volume carries more conviction than the same move on light volume. Deviation thresholds identify when volume-weighted momentum becomes statistically significant, marking genuine momentum events versus noise.
How to Read It
A continuous momentum line with directional arrow signals is displayed.
- Momentum Line above zero indicates positive volume-weighted momentum
- Momentum Line below zero indicates negative volume-weighted momentum
- Up Signal arrows mark bars where momentum exceeds the upper deviation threshold — confirmed bullish push
- Down Signal arrows mark bars where momentum drops below the lower deviation threshold — confirmed bearish push
Practical Tips
The MA Period controls smoothing — shorter periods catch faster moves, longer periods filter noise. The Deviation Multiplier sets the signal threshold — lower values produce more signals. The Heikin Ashi option can smooth the calculation further. Pair with price structure studies for best results — volume-confirmed momentum at key levels is highest conviction.
Input & Settings
| No. | Input Name | Function |
|---|---|---|
| 1 | MA Period | The period used for the moving average calculation in the momentum computation. Default: 7. |
| 2 | Deviation Multiplier | Multiplier applied to the volatility deviation for signal threshold calculation. Default: 1.5. |
| 3 | Use Heikin Ashi | When enabled, uses Heikin Ashi candle values instead of standard OHLC data for the momentum calculation. Default: No. |
| 4 | Enable Print on Close | When enabled, outputs signal information to the Sierra Chart message log on bar close. Default: No. |
The period used for the moving average calculation in the momentum computation. Default: 7.
Multiplier applied to the volatility deviation for signal threshold calculation. Default: 1.5.
When enabled, uses Heikin Ashi candle values instead of standard OHLC data for the momentum calculation. Default: No.
When enabled, outputs signal information to the Sierra Chart message log on bar close. Default: No.
Subgraphs
| No. | Subgraph Name | Function & Comments |
|---|---|---|
| 1 | Momentum Line | Default: Line. Displays the calculated volume-based momentum value as a continuous line. |
| 2 | Up Signal | Default: Arrow Up. Marks bars where momentum exceeds the upper deviation threshold, indicating strong bullish volume-backed movement. |
| 3 | Down Signal | Default: Arrow Down. Marks bars where momentum drops below the lower deviation threshold, indicating strong bearish volume-backed movement. |
Default: Line. Displays the calculated volume-based momentum value as a continuous line.
Default: Arrow Up. Marks bars where momentum exceeds the upper deviation threshold, indicating strong bullish volume-backed movement.
Default: Arrow Down. Marks bars where momentum drops below the lower deviation threshold, indicating strong bearish volume-backed movement.
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