OPEN-SOURCE SCRIPT
Volatility Based Momentum Oscillator (VBMO)
There is a frequent and definitive pattern in price movement, whereby price will steadily drift lower, then accelerate before bottoming out. Similarly, price will often steadily rise, then accelerate into a climax top.
The Volatility Based Momentum Oscillator (VBMO) is designed to delineate between steady versus more accelerated and climactic price movements.
VBMO is calculated using a short-term moving average, the distance of price from this moving average, and the trading instrument’s historical volatility. Even though VBMO’s calculation is relatively simple, the resulting values can help traders identify, analyze and act upon many scenarios, such as climax tops, reversals, and capitulation. Moreover, since the units and scale for VBMO are always the same, the indicator can be used in a consistent manner across multiple timeframes and instruments.
For more details, there is an article further describing VBMO and its applicability.
The Volatility Based Momentum Oscillator (VBMO) is designed to delineate between steady versus more accelerated and climactic price movements.
VBMO is calculated using a short-term moving average, the distance of price from this moving average, and the trading instrument’s historical volatility. Even though VBMO’s calculation is relatively simple, the resulting values can help traders identify, analyze and act upon many scenarios, such as climax tops, reversals, and capitulation. Moreover, since the units and scale for VBMO are always the same, the indicator can be used in a consistent manner across multiple timeframes and instruments.
For more details, there is an article further describing VBMO and its applicability.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.