T3-Based Velocity Indicator for Smoother Momentum Signals
Summary
The indicator calculates velocity using the T3 smoothing method; it is not simply a velocity series smoothed afterward with T3. The document describes velocity as a smoother form of momentum and says the T3 calculation smooths it further, aiming to make momentum changes easier to read.
It offers both Tim Tillson’s original calculation and a modified Fulks/Matulich version. A typical setup uses 20 prices, with gradient coloring to help identify momentum direction. The document provides no performance evidence, entry or exit rules, or guidance on selecting between the two variants. It describes an indicator concept rather than a complete trading strategy, so its usefulness and lag under different market conditions remain unassessed.
Key ideas
- The indicator applies T3 in calculating velocity rather than smoothing a precomputed velocity series.
- Velocity is presented as a smoother momentum measure, with T3 adding further smoothing.
- The indicator includes both original Tim Tillson and modified Fulks/Matulich calculations.
- Gradient coloring is intended to make momentum changes easier to interpret.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.