Body Momentum Oscillator: Counting Up and Down Candle Bodies

Summary

The body momentum oscillator compares the number of bars whose closes are above their opens with the number whose closes are below their opens over a rolling lookback. It expresses the up-bar share as a percentage, then smooths that measure with a moving average. The example uses a 14-bar lookback and a 3-period smoothing setting. Readings above 70 indicate that up candles dominate the count, while readings below 30 indicate that down candles dominate.

The method reflects candle direction, not the size of each candle body or the magnitude of price changes. A small positive body counts the same as a large one, and flat bars are assigned to the down count in the provided logic. The document describes the indicator and its thresholds but supplies no market examples, performance evidence, or rules for entering and exiting trades. The levels therefore serve as descriptive reference points, not demonstrated signals or guarantees of future direction.

Key ideas

• The indicator counts positive and nonpositive candle bodies over a rolling lookback.
• It converts the positive-body share into a percentage and smooths the result.
• Readings above 70 mark a predominance of up candles, while readings below 30 mark a predominance of down candles.
• The count weights each bar equally, regardless of body size.
• The document provides no backtest or evidence that the thresholds predict returns.

Tags

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