Momentum and Acceleration

The following oscillator is a twist on momentum, incorporating a 2nd derivative "acceleration" to help determine changes in momentum. Both are plotted directly accessing previous series values rather than using a moving average.

The script has an option to divide so the formula is d(Price)/d(Time), like a derivative. The script also provides options for the user to use their price source, volume, or a combination of price and volume.

Credit: This script utilizes the "color gradient framework" tutorial by LucF (PineCoders) to create user-adjustable gradient visuals.

Definitions

• "1st Derivative - Momentum" - Momentum is most commonly referred to as a rate and measures the acceleration of the price and/or volume of a security.
  
• "2nd Derivative - Acceleration" - Acceleration is the rate of change of momentum.

Value Added

• This script may help the trader to assess directional changes in momentum easier.
  
• This script also plots using previous series values rather than using a moving average function. To my knowledge, I was unable to find one that does this for "2nd derivative", so it had to be created.

Notes de version:

3-Nov-21: added timeframe/gaps feature