Constructing the Smoothed Repulse Momentum Indicator

Summary

The document presents a formula for a smoothed repulse indicator intended for use in automated trading strategies and experimentation. It derives a bullish component from the close relative to the period low and a lagged open, and a bearish component from the lagged open, period high, and close. Each component is scaled by the close and smoothed with an exponential average whose span is five times the selected length. The indicator is the bullish component minus the bearish component, plotted alongside a zero reference line.

The default length is five, and the user can change it. Positive or negative readings can be interpreted relative to the zero line, but the document does not specify entry or exit rules, asset classes, position sizing, or risk controls. It supplies no backtest, performance evidence, or comparison with other indicators, so it describes an indicator construction rather than demonstrating a trading edge. The remaining text concerns platform privacy practices and is unrelated to the method.

Key ideas

• The indicator subtracts a smoothed bearish component from a smoothed bullish component.
• Both components use recent highs or lows, a lagged open, and the current close.
• An exponential average smooths each component over a span tied to the chosen length.
• The default length is five, and the output includes a zero reference line.
• The document provides no trading rules or evidence that the indicator is profitable.

Tags

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