Adaptive Momentum Base

The Adaptive Momentum Base, (AMB), is a momentum based indicator which measures the momentum change in the recent candles and changes the colour of bar which it occurred on.

Momentum is used as a confirmation to show that the market may move in favour of your direction if the momentum is present for that direction.

Trade Example:
If you have long/short positions open and the market is moving in your favour, the signal will indicate to hold on to the position for a while has the price action has not been completed.

Script Explained:
AMB works by using the velocity created by the bars during the period of the "lookback" which is then used to formulate the momentum. The momentum is then compared against the previous bars and if a spike in momentum occurs, the indicator will follow to give a signal.