T3 Velocity Mix: A Three-Horizon Price Momentum Oscillator

Summary

The document describes a custom oscillator derived from the T3 velocity indicator. It builds three versions of the calculation using short, intermediate, and long exponential smoothing periods, producing separate lines intended to represent price behavior across different time horizons. The sample settings use periods of 8, 32, and 64, and a velocity factor of 0.7. Each line is formed from repeated exponential averages and a difference between paired smoothed series; the resulting outputs are plotted around a zero reference level.

The three lines are presented as a way to compare faster and slower movement in one indicator, with the periods adjustable in the indicator parameters. However, the document provides no interpretation rules for crossings or zero-line moves, no entry or exit strategy, and no performance or robustness evidence. It is therefore an indicator construction example rather than a validated trading system, and the significance of its signals would need to be assessed through testing on the intended market and timeframe.

Key ideas

• The indicator combines three T3 velocity calculations to represent short, intermediate, and long horizons.
• Each horizon uses repeated exponential smoothing and a difference between smoothed series.
• The example uses periods of 8, 32, and 64 with a velocity factor of 0.7.
• The oscillator plots three lines alongside a zero reference level.
• The document gives no signal rules or evidence that the oscillator improves trading performance.

Tags

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