William Blau Candlestick Index: Triple-Smoothed Momentum

Summary

The William Blau Candlestick Index is presented as a smoothed oscillator built from candlestick momentum. Its calculation applies three successive exponential moving averages to candlestick momentum, then divides that result by a similarly smoothed measure of the high–low range and scales it by 100. This normalization is intended to express momentum relative to price movement.

The listed inputs include the momentum period, applied price, three smoothing periods, and upper and lower reference levels. Those levels can be used to identify potential overbought or oversold conditions, though the document does not specify their values or provide entry and exit rules. It gives the calculation formula but no chart examples, performance evidence, or comparison with other indicators. The description is therefore useful for understanding the indicator’s construction, but it does not establish that its signals predict future returns or explain how to validate them across markets and timeframes.

Key ideas

• The indicator compares triple-smoothed candlestick momentum with a triple-smoothed high–low range.
• Its output is scaled by 100 to express momentum relative to the range measure.
• Inputs include a momentum period, applied price, three smoothing periods, and upper and lower levels.
• The document provides a formula but no signal rules, parameter values, or performance evidence.

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