Momentum Pinball: RSI-Style Daily Price Acceleration

Summary

Momentum Pinball adapts the relative strength index to track changes in daily price movement rather than relying directly on the current close. It compares the change between consecutive daily closes with the prior change, separates upward and downward acceleration, and smooths those components with exponential averages over a stated example period. The resulting oscillator is presented with reference levels: readings above 60 are described as warning of strong bullish pressure, while readings below 40 indicate bearish pressure; 50 is also plotted as a midpoint.

The document gives a formula and threshold interpretation, but no backtest, sample markets, or evidence that the signal predicts returns. It describes the indicator as a quick view of current-candle acceleration relative to prior periods, not as a complete trading system. The suggested thresholds should therefore be treated as interpretation guidance from the source, with effectiveness and suitability left unverified.

Key ideas

• The indicator applies an RSI-style calculation to changes in daily price differences.
• It smooths positive and negative acceleration components with exponential averages.
• Values above 60 are presented as a bullish-pressure warning, and values below 40 as bearish.
• The source supplies no backtest or evidence of predictive performance.

Tags

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