Background:
I was impressed by physics calculation with subject named "Linear Momentum" that can be found on Mr. Achmad Hidayat’s blog with title "Konsep Momentum Linier dan Interpretrasinya pada Forex" and challenged to create a simple indicator based on that article. Unfortunately, I wasn’t able to read his article clearly, so I was looking for another reference for better sense. Then I felt grateful after I found a very clear article about Linear Momentum written by Mrs. Sarah Friedl that can be found at http://study.com/academy/lesson/linear-momentum-definition-equation-and-examples.html.
Linear Momentum:
Momentum is strength of an object that moves to different place — this is my own definition. Momentum can be calculated with following equation: momentum = mass x velocity. You should already know that velocity is speed with direction. Shortest equation will be: p=mv where p is momentum, m is mass (in kg) and v is velocity (in m/s).
Linear Momentum Implementation in MetaTrader Custom Indicator:
The following will explain why it’s called Linear Momentum in Forex:
- p = momentum;
- m = mass, converted into volume of trade or tick; I would prefer to use tick volume because it’s more easy to find tick information than volume of all lots traded around the world;
- v = velocity, it’s a value taken from pips movement divided by timeframe (point/seconds, originally in m/s).
