Combined Open and Close Volume Momentum

Combined Open and Close Volume Momentum Indicator

This indicator calculates and visualizes the momentum of Open and Close volumes based on changes in Open Interest (OI) and price direction. It provides traders with a clear view of volume dynamics and their impact on market momentum.

Key Features:

• Open Volume Momentum: Tracks the momentum of volume associated with new positions being opened.
  Differentiates between green candles (positive momentum) and red candles (negative momentum).
  Accumulates momentum over time, with an option to reset periodically.
  
• Close Volume Momentum: Tracks the momentum of volume associated with closing existing positions.
  Momentum is weighted by price direction:
  Price increase → Positive momentum.
  Price decrease → Negative momentum.
  Accumulates momentum over time, with an option to reset periodically.
  
• Reset Functionality: Allows traders to reset accumulated momentum after a specified period (in days).
  Customizable reset period for both Open and Close volume momentum.
  
• Visual Representation:
  • Green Line → Positive Open Volume Momentum.
    
  • Red Line → Negative Open Volume Momentum.
    
  • Blue Line → Positive Close Volume Momentum.
    
  • Orange Line → Negative Close Volume Momentum.
    
  • Includes a gray dotted zero line for reference.
    

Use Case:
This indicator is ideal for futures traders who want to:

• Analyze the impact of volume dynamics on market momentum.
  
• Differentiate between momentum caused by opening new positions and closing existing positions.
  
• Identify trends and reversals based on volume and price action.
  
• Reset momentum data periodically for fresh analysis.
  

How It Works:

1. Open Volume Momentum: Calculated from Open Interest changes when new positions are opened.
   Green candles → Positive momentum.
   Red candles → Negative momentum.
   Accumulated over time, with optional periodic resets.
   
2. Close Volume Momentum: Calculated from volume associated with closing positions.
   Momentum is weighted by price direction:
   Price increases → Positive contribution.
   Price decreases → Negative contribution.
   Accumulated over time, with optional periodic resets.
   
3. Reset Functionality: Enabled by default and customizable through input settings.
   Reset period is defined in days.
   
4. Visualization:
   • Open Volume Momentum is plotted as a line that changes color:
     Green Line → Positive momentum.
     Red Line → Negative momentum.
     
   • Close Volume Momentum is plotted as a line that changes color:
     Blue Line → Positive momentum.
     Orange Line → Negative momentum.
     
   • A gray dotted zero line is included for reference.