Momentum Signals from Open and Close Price Momentum Indicators

Summary

This document describes a semaphore-style indicator that generates signals from two Momentum calculations applied to open and close price series. A signal occurs when the difference between those calculations changes sign. The resulting direction change is intended to align with a color transition in the related MomentumCandle indicator, translating its visual state into discrete signal markers.

The description explains the signal rule but provides no parameter settings, chart evidence beyond a figure reference, trading results, or guidance on how to enter or exit positions. It therefore presents an indicator concept rather than a tested strategy. Users would need to evaluate how the signals behave across instruments and timeframes, and account for possible lag, whipsaws, and the distinction between indicator events and profitable trades. No evidence is given that the signals predict returns or work reliably in live markets.

Key ideas

• The indicator calculates Momentum separately from open and close price series.
• Signals are produced when the difference between the two Momentum values changes sign.
• Signal direction is intended to correspond to a color change in the related candle indicator.
• The document gives no performance evidence or trading rules beyond the signal construction.

Tags

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