Detecting Momentum by Comparing Uptrend and Downtrend Fair Value Gaps
Summary
The document describes a directional momentum indicator based on counting fair value gaps (FVGs) within a selected window. It tracks the total number of gaps associated with uptrends and the total associated with downtrends, including both filled and unfilled gaps. The two counts are shown as separate lines, with green representing the uptrend count and red the downtrend count.
The proposed interpretation is comparative: a higher green line indicates upside momentum, while a higher red line indicates downside momentum. The description does not specify how FVGs are identified, how the window length should be chosen, or how the indicator should be combined with entries, exits, or risk controls. It provides no chart, backtest, asset class, or performance evidence, so the signal is a simple heuristic rather than a demonstrated trading strategy.
Key ideas
- The indicator counts uptrend and downtrend fair value gaps over a chosen window.
- Its totals include gaps whether they have been filled or remain unfilled.
- A higher uptrend count is interpreted as upside momentum.
- A higher downtrend count is interpreted as downside momentum.
- The document supplies no validation results or detailed rules for identifying gaps.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.