Velocity, Acceleration, Jerk

2022년 1월 22일

Just a simple indicator. It measures the velocity, acceleration, and jerk of the price. Velocity being the rate of change of price, acceleration being the rate of change of velocity, jerk being the rate of change of acceleration.

With the default length of 50, the indicator measures the height difference of two prices 50 bars apart. This is recorded as velocity or slope. 50 bars later, a second slope is recorded. The change in this value will be the acceleration. Another 50 bars later, (a total of 150 bars) another acceleration is recorded, and the change of that value is jerk.

Positive velocity indicates the price is uptrending. Positive acceleration indicates the trend is growing, or the price is falling then rising (price will make "U" shapes for positive and "∩" shapes for negative). Positive jerk indicates higher highs and higher lows (price will transition from "∩" to "U" shapes for positive jerk and "U" to "∩" for negative jerk).

I'm not sure any of this is useful. It's just interesting to see some physics behind prices.

Note: velocity, acceleration, and jerk graphs are not to scale (they'd be too small to see if they were)