Adapting Linear Momentum to Forex with Tick Volume and Price Speed
Summary
This document proposes a forex indicator inspired by the physics formula for linear momentum: mass multiplied by velocity. It maps mass to trade volume or tick volume, preferring tick volume because it is easier to obtain than total market-wide traded volume. It maps velocity to price movement in pips divided by the timeframe, adapting the physical idea of directed motion over time to currency prices.
The text explains the analogy and the intended ingredients for a MetaTrader custom indicator, but does not provide a complete formula, signal rules, implementation details, or test results. It also does not explain how tick volume relates to actual traded volume across decentralized forex venues, or how the resulting measure should be normalized and interpreted. The proposal is therefore a conceptual starting point rather than evidence of a tested trading strategy.
Key ideas
- The proposal adapts the physical relationship between mass and velocity to a forex indicator.
- Tick volume is suggested as a practical proxy for the mass component.
- Price movement in pips divided by the timeframe represents the proposed velocity component.
- The document presents a concept but does not specify complete signal rules or report test results.
- Tick volume may not represent total traded volume across the fragmented forex market.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.