Doc's Kinetic Energy
Originally conceived as a market speedometer, Kinetic Energy (KE) evolved into a measure of how much participation is driving price movement. Inspired by the classical physics equation:
KE = ½mv²
where volume acts as mass (m) and price velocity (v) is calculated from the rate of price displacement over a fixed lookback period. The resulting KE value is a directionless measure of market activity that increases when both participation and movement are strong.
The companion Power calculation measures the change in Kinetic Energy over time:
Power = ΔKE
helping identify whether market activity is expanding or contracting. Together, KE and Power answer two simple questions:
How much is happening? and Is it increasing or decreasing?
Both KE and Power are expressed as percentiles, making interpretation straightforward:
Above 80: High energy or unusually active market conditions.
Below 20: Low energy or dormant market conditions.
Rising Power: Market activity is accelerating.
Falling Power: Market activity is decelerating.
KE is intentionally directionless and is best used alongside a directional indicator to distinguish between active, committed market moves and low-energy price action.
KE = ½mv²
where volume acts as mass (m) and price velocity (v) is calculated from the rate of price displacement over a fixed lookback period. The resulting KE value is a directionless measure of market activity that increases when both participation and movement are strong.
The companion Power calculation measures the change in Kinetic Energy over time:
Power = ΔKE
helping identify whether market activity is expanding or contracting. Together, KE and Power answer two simple questions:
How much is happening? and Is it increasing or decreasing?
Both KE and Power are expressed as percentiles, making interpretation straightforward:
Above 80: High energy or unusually active market conditions.
Below 20: Low energy or dormant market conditions.
Rising Power: Market activity is accelerating.
Falling Power: Market activity is decelerating.
KE is intentionally directionless and is best used alongside a directional indicator to distinguish between active, committed market moves and low-energy price action.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.