A Volume-Weighted Buy and Sell Pressure Momentum Oscillator

Summary

This indicator compares buying and selling pressure using candle movement relative to the prior close, scaled by recent averages and weighted by volume. It presents three readings: a histogram measuring the difference between regression-smoothed buying and selling pressure, plus separate averaged buying-pressure and selling-pressure lines. The author describes the regression-based histogram as a faster view of trend force and the averaged lines as a slower confirmation, framing the tool as a momentum indicator with a candle-based construction.

The document gives one set of calculation periods and an implementation, but does not define explicit entry, exit, or risk rules. It offers no market-specific guidance, backtest, benchmark, or evidence that the indicator predicts returns. Its comparison to ADX is descriptive; the document does not establish equivalent behavior or performance. Traders would need to test the calculation and its signals against their own instruments and trading horizon before relying on it.

Key ideas

• The oscillator compares buying and selling pressure derived from candle movement around the prior close.
• Recent average pressure and volume are used to scale the component readings.
• A regression-smoothed pressure difference is intended to respond faster than the averaged pressure lines.
• The author positions the indicator as a candle-based momentum measure similar in purpose to ADX.
• No trading rules or empirical performance evidence are provided.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.