The script has an option to divide so the formula is d(Price)/d(Time), like a derivative. The script also provides options for the user to use their price source, , or a combination of price and .
Credit: This script utilizes the "color gradient framework" tutorial by LucF (PineCoders) to create user-adjustable gradient visuals.
- "1st Derivative - Momentum" - Momentum is most commonly referred to as a rate and measures the acceleration of the price and/or of a security.
- "2nd Derivative - Acceleration" - Acceleration is the of momentum.
- This script may help the trader to assess directional changes in momentum easier.
- This script also plots using previous series values rather than using a moving average function. To my knowledge, I was unable to find one that does this for "2nd derivative", so it had to be created.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.