⚙️ PriceMomentum: Introducing a New Chart Type from TradingCenter

A PriceMomentum chart improves a regular price chart by adding key features like intraday momentum and market volatility, giving traders a clearer view ️for stronger chart analysis.

---

️〽️ The PriceMomentum Chart: A First Look

PriceMomentum was created by Giorgos Protonotarios to offer a new way of looking at chart analysis. This chart type focuses on percentage changes rather than absolute prices. It also uses an algorithm that factors in market volatility and shifts in periodic momentum. It brings together three key elements:

• Periodic Percentage Change (%)

• Bullish/Bearish Periodic Momentum

• Volatility (measured by the daily high-to-low range)

Basic Features:

• Focuses on percentage gains/losses while ignoring price levels

• Closer to a logarithmic chart than a standard price chart

• Combines price action with intraday momentum and volatility, making it more accurate near market tops and bottoms

• Very sensitive to momentum shifts, especially when paired with high volatility (often seen near tops/bottoms)

• Technical analysis patterns and formations remain fully valid on a PriceMomentum chart

• Moving averages can be applied as usual

Usage:

• Can be applied to any asset class and timeframe, though it is currently used on the daily chart

• Ideal for analyzing long-term trends in volatile markets where a standard price chart fails to capture price action

• Useful for projecting market speculation activity over the long term

• Able to detect the exhaustion of major trends well before a simple price chart does

• Designed to signal market tops and bottoms earlier than both common and logarithmic charts, since it includes price momentum, which shifts before tops/bottoms appear

• Can reveal historical support and resistance zones, draw accurate trendlines, and identify significant channels (such as in EURUSD)

---

 

📑 Examples of the PriceMomentum on EURSD, Bitcoin, and Gold

These are the first PriceMomentum charts ever published online.

---

💱 PriceMomentum on EURUSD

Starting with the most liquid asset in the world, the Eurodollar exchange rate, the PriceMomentum chart is applied. 🔗 More: » EURUSD

Chart: EUR/USD PriceMomentum chart

👉 Notes:

• You can see a clear descending triangle formed over the past 18 years (2004–2021).

• Each time the exchange rate touches the upper or lower trendline of the channel, the trend reverses sharply.

---

₿ PriceMomentum on Bitcoin (BTC/USD)

The PriceMomentum chart is ideal for analyzing volatile markets, including cryptocurrency and Bitcoin. 🔗 More: » How to Trade Bitcoin

Chart: Bitcoin/USD PriceMomentum chart

👉 Notes:

As you can see, the PriceMomentum chart shows the phase of the Bitcoin market at a glance using a simple SMA(100):

□ Above the SMA(100) on the daily chart, the market is long-term bullish

□ Below the SMA(100) on the daily chart, the market is long-term bearish

It’s that simple. Interestingly, the PriceMomentum chart of Bitcoin reached a new all-time high well before the price chart did, breaking $20,000. This is further proof that price momentum moves ahead of the price itself.

---

🪙 PriceMomentum on the Price of Gold (XAU/USD)

The PriceMomentum chart of gold versus the US Dollar. 🔗 More: » Historical Perspective on Gold Prices

Chart: Gold/USD PriceMomentum chart

👉 Notes:

It is interesting that while the price chart of Gold reached a new all-time high in 2020, the PriceMomentum chart did not. The price hit a record, but the momentum showed a clear weakness in surpassing the previous 2012 high. This lack of momentum may explain why Gold’s price could not sustain the new all-time high for more than a few months.

 

Stay tuned, more exclusive TA tools are coming from TradingCenter.org!

 

■ PriceMomentum: A New Chart Type by TradingCenter

Giorgos Protonotarios, Financial Analyst

for TradingCenter.org (c)

29th of April 2021