Indicator Overview

The Momentum Coalescence indicator evaluates price momentum by combining: Fast Rate of Change (ROC), Slow Rate of Change (ROC), Volume delta, and Volatility Directional Bias (VDB).

It creates a normalised score to reflect the convergence of bullish or bearish forces in the market. This indicator is crucial for understanding shifts in market sentiment, as it captures both price and volume dynamics, helping investors identify potential trend reversals or continuations.

Dual-Ticker Comparison Logic

The Ticker fields allow you to transition from absolute price analysis to relative strength analysis:

• Single Stock Analysis: If Ticker 2 is left blank, the indicator defaults to measuring Ticker 1against US Dollars. This allows you to analyse the asset's individual performance.

• Pair Trading & Ratios: Enter a symbol in both fields (e.g. NVDA vs. TSLA) to analyse the relationship between the two. The indicator automatically calculates the ratio (Ticker 1 / Ticker 2), helping you identify when one asset is becoming "expensive" or "cheap" relative to its peer, independent of broader market direction.
  
  

How To Use

Historically, positive coalescence scores above 0.5 often signal strong bullish momentum, coinciding with price rallies. Negative scores below -0.5 may indicate bearish pressure, often seen during corrections. You can use extreme readings to anticipate reversals: overbought conditions (high positive scores) suggest caution, while oversold levels (low negative scores) may present buying opportunities. The histogram or line, with a neutral line at zero, helps visualise momentum shifts.