Momentum + Volume Percentile

This advanced momentum indicator combines smoothed momentum analysis with percentile-based volume filtering to identify high-quality trading opportunities backed by significant market participation.

How It Works:

The indicator calculates momentum (rate of change) over a customizable period and applies multiple smoothing techniques to reduce noise. It then filters price action by highlighting only periods where volume exceeds a specified percentile threshold.

The algorithm:

Calculates raw momentum based on price changes over the specified period

Applies customizable smoothing (SMA, EMA, WMA, or HMA) to the momentum values

Computes a moving average of the smoothed momentum as a trend reference

Analyzes volume over a lookback period to establish percentile rankings

Highlights candles where volume exceeds the percentile threshold with color-coded backgrounds

Distinguishes between bullish (green) and bearish (red) high-volume events