Price Speed Indicator for Trend and Breakout Analysis
Summary
The PriceSpeed indicator measures average price movement in points per minute and adds estimates of real and false peak speeds. Average speed is presented as potentially useful for assessing trends, while peak-speed measures are intended to help identify breakout or pulse activity. The indicator displays the average, the candle’s high-to-low peak estimate, and opposing movements from the open to an extremum and from the other extremum to the close. A standard-deviation corridor summarizes the variability of peak speeds over a selected lookback.
The document emphasizes that peak speed is only an estimate: it divides the candle’s price range by the full candle duration, although the high and low usually occur closer together in time. This makes the estimate a lower bound on the actual speed. The indicator does not analyze smaller timeframes, and the averaging and deviation periods affect its readings. No trading rules, backtests, or performance results are supplied, so the display is a measurement tool rather than a validated strategy.
Key ideas
- The indicator reports average price speed and estimates of real and false peak speed.
- Peak speed is estimated from each candle’s high-low range over the candle duration.
- Because the extrema usually occur within the candle, the peak-speed estimate is generally a lower bound.
- A standard-deviation corridor shows variation in peak speeds across a selected period.
- The document gives no tested entry rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.