Blast Off Momentum

The Blast Off Momentum indicator provides an experimental interpretation of Larry Williams' Blast Off concept, designed to visualize market direction and price action strength. It measures the relationship between the candle body and the total trading range to identify periods of directional pressure and momentum expansion.

Usage

The Usage section focuses on interpreting the relationship between the oscillator, the signal line, and the threshold levels. Traders can use this tool to identify potential trend starts or exhaustion points.

• Directional Strength: Columns appearing above the zero line indicate positive momentum (bullish), while columns below indicate negative momentum (bearish).
• Threshold Breaks: When the columns exceed the defined upper or lower thresholds, it suggests a significant increase in momentum, often visualized through stronger color intensities.
• Signal Line Crossovers: The interaction between the main oscillator and its signal line can be used to identify shifts in momentum velocity. A crossover above the signal line suggests strengthening momentum, while a cross under suggests weakening momentum.
• Bar Coloring: The indicator applies color to the price bars based on the oscillator's position relative to the zero line and thresholds, allowing for easy trend identification on the main chart.

Details

The Blast Off Momentum is based on the calculation of the "Blast Off" value, which is the ratio of the open-to-close range (body) to the high-to-low range (total range). Unlike the original Larry Williams version which often uses absolute values, this version preserves the directional sign (positive for bullish bars, negative for bearish bars).

The result is multiplied by 100 to create a percentage-based scale and then smoothed using an Exponential Moving Average (EMA) to filter out noise. A second EMA is applied to this result to create the Signal Line.

Settings

• Period: Sets the EMA length used to smooth the raw Blast Off values. Higher values result in a slower, smoother indicator.
• Signal Period: Sets the length for the second EMA, which forms the Signal Line.
• Threshold Distance: Defines the distance from the zero line for the upper and lower threshold levels. These levels change the color intensity of the columns when breached.

FAQ

How do I interpret the colored columns?

The columns represent the smoothed momentum value. Green indicates positive momentum, and red indicates negative momentum. Darker/stronger shades appear when the value exceeds the set thresholds.

What does a zero value represent?

A zero value indicates a neutral state where either the open and close are identical (Doji) or the positive and negative movements within the smoothed period are balanced.

How can I access Blast Off Momentum?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.