Market Energy Indicator (MEI)

23 mar

⚡ Market Energy Indicator (MEI)

The Market Energy Indicator (MEI) enables traders to quantify the "energy" or strength behind price movements by integrating price changes with traded volume, providing a distinct insight into market momentum and direction.

📌 USAGE

MEI calculates market energy from significant price movements in conjunction with volume data, filtering out insignificant fluctuations through an adjustable sensitivity threshold.

This tool is particularly effective for detecting high-probability continuation moves and anticipating potential reversals in market trends.

The calculation sequence involves:
- Measuring the price change over a period selected by the trader.
- Multiplying the price change by corresponding volume data.
- Smoothing the resultant energy with a simple moving average.
- Applying a customizable threshold to filter out noise and highlight significant moves.

📈 MEI Interpretation

- **Positive Energy**: Reflects strong upward market momentum.
- **Negative Energy**: Reflects strong downward market momentum.
- **Zero Line Crosses**: Highlight pivotal signals indicating potential market entries or exits.

🔔 Signal Detection

Traders can finely tune the indicator's responsiveness through three adjustable parameters:

- **Calculation Length**: Determines how many bars are considered when assessing price changes.
- **Smoothing**: Controls the degree of signal smoothing via a simple moving average.
- **Energy Threshold**: Defines the minimum magnitude required to qualify movements as meaningful; higher thresholds produce fewer but more reliable signals.

🚨 Automatic Alerts

- **Positive Energy Alert**: Triggers when energy crosses above zero.
- **Negative Energy Alert**: Triggers when energy crosses below zero.

⚙️ SETTINGS

🛠️ Indicator Parameters

- **Calculation Length**: Defines the number of bars for energy calculation.
- **Smoothing**: Adjusts how aggressively the energy readings are smoothed.
- **Energy Threshold**: Controls sensitivity to detect significant market movements, reducing false signals.
- **Timeframe**: Enables multi-timeframe energy analysis from a single chart.

🎨 Visualization

- **Energy Histogram**: Visually represents the magnitude and direction of energy movements.
- Green bars: Bullish market energy.
- Red bars: Bearish market energy.
- **Baseline**: Clearly marked zero line distinguishing positive from negative market energies, facilitating rapid signal recognition.

The MEI offers traders an insightful, practical, and adaptable method for interpreting market dynamics, enhancing decision-making accuracy with timely and reliable signals.

4 apr

Note di rilascio

- Updated chart visuals
- Changed background
- Adjusted symbol and timeframe