As the market tries to bottom after a sell off, there are gradually more candles with green bodies, even though prices remain in a narrow range. IMI can be used to detect this shift, because its values will increase towards 70. Similarly, as the market begins to top, there will be more red candles, causing IMI to decline towards 20. When the market is in trading range, IMI values will be in the neutral range of 40 to 60.
Usually intraday momentum leads interday momentum. can show interday momentum, it complements IMI . You will find it in my published indicators.
I have added bands based OB/OS, in addition to static OB/OS levels. You can also turn on IMI smoothing. BTW, all parameters are configurable, so do check out the options page.
List of my other indicators:
- - Google doc: https://docs.google.com/document/d/15AGC...
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
// // @author LazyBear // List of all my indicators: https://www.tradingview.com/v/4IneGo8h/ // study("Intrady Momentum Index [LazyBear]", shorttitle="IMI_LB") length=input(14, "IMI Length") lengthMA=input(6, "IMI MA Length") obLevel=input(70, "IMI static OB level") osLevel=input(20, "IMI static OS level") mult=input(2.0, title="Volatility Bands Stdev Mult") lengthBB=input(20, title="Volatility Bands Length") applySmoothing=input(false, "Smooth IMI") lowBand=input(10, "Smoothing LowerBand") PI=3.14159265359 EhlersSuperSmootherFilter(price, lower) => a1 = exp(-PI * sqrt(2) / lower) coeff2 = 2 * a1 * cos(sqrt(2) * PI / lower) coeff3 = - pow(a1,2) coeff1 = 1 - coeff2 - coeff3 filt = coeff1 * (price + nz(price)) / 2 + coeff2 * nz(filt) + coeff3 * nz(filt) filt gains=iff(close>open,nz(gains)+(close-open),0) losses=iff(close<open,nz(losses)+(open-close),0) upt=sum(gains,length) dnt=sum(losses,length) imi=applySmoothing ? EhlersSuperSmootherFilter(100*(upt/(upt+dnt)), lowBand) : 100*(upt/(upt+dnt)) basisx=ema(imi, lengthBB) devx = (mult * stdev(imi, lengthBB)) ulx = (basisx + devx) llx = (basisx - devx) // Uncomment if you want more bands //hline(90) //hline(10) hline(obLevel) hline((obLevel+osLevel)/2, linestyle=dotted) hline(osLevel) plot(imi, color=red, linewidth=2) plot(imi>=ulx? imi : na, color=green, style=cross, linewidth=3 ) plot(imi<=llx? imi : na, color=maroon, style=cross, linewidth=3 ) plot(ema(imi, lengthMA), color=blue)