need help whith idea about volumehe degree to which a physical object persists in its current motion is measured by the metric momentum. In physics, the formula for calculating momentum is the product of an object's mass ("its weight") and its velocity. The greater either of these values, the larger the momentum of the object, making it harder to stop its motion. Intuitively, we understand that stopping the motion of a rolling ball is more difficult if the ball is heavier or moving faster.
To calculate the momentum of price movement, we can draw an analogy to the physical concepts of velocity and mass:
The velocity of price movement is reflected on the chart by the length of the full candlestick. A longer candlestick indicates a higher rate of price change since it covers a greater distance over the same time interval.
The mass of the candlestick ("its weight") is represented by the trading volume (VOLUME). The "mass of traders," is equivalent to the mass of a physical object. The trading volume indicator is typically displayed in a separate field below the price chart.
The relationship between these two variables, trading volume and the rate of price change, is not straightforward. There is an intuitive assumption that high trading volume accompanies rapid price changes. However, in many cases, high trading volume does not result in a corresponding price change because any increase in demand is immediately offset by an increase in supply, and vice versa. This creates a balance between buyers and sellers, pulling at opposite ends of the "rope," resulting in little or no movement.
Therefore, these variables should be treated as independent, and momentum should be evaluated solely based on their product.
I will appreciate if someone will write an indicator for this:
1. Subtract the closing prices from the opening prices.
2. Normalize it so that the highest absolute value becomes 1.
3. Normalize the volume values so that the highest absolute value becomes 1.
4. Multiply the values obtained in step 2 by those obtained in step 3.
5 . Plot the results as a separate graph overlaid within the price graph.
