ATR & Volume Adjusted Momentum indicator

The ATR and Volume adjusted momentum oscillator include a ratio made of 2 double smoothed exponential average of the momentum compared to the absolute one.

The AbsMtm is a calculation of the momentum weighted with Volumes. So this technical indicator should be used on a security that deals with Volumes.

Trading signals can be compared to the MACD, the main oscillator is in histogram, while the signal line is a curve. Bullish and bearish signals are made with cross over and cross under the histogram and the signal line. You can also wait for the histogram to cross the 0 line which represents the frontier between the buyers and the sellers.

Translation of a MetaStock code by a request in the Spanish forum.

//PRC_ATR&Volume adjusted Momentum | indicator
//30.05.2017
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//translated from Metastock code

// --- settings
//avgP=10
//avgType=0 //moving average type
//p1=5
//p2=30
//momp=5
//--- end of settings

Mtm = (Close - close[momp] )/AverageTrueRange[momp]
AbsMtm = (abs ( mtm)+ abs(Volume-volume[momp]))

NumE = exponentialaverage[p2](exponentialaverage[p1](mtm))
DenE = exponentialaverage[p2](exponentialaverage[p1](absmtm))

Bensu = 100*(NumE/DenE)

//Volume Change
Volwma=WeightedAverage[13](Bensu)

//signal line
signal=average[avgP,avgType](volwma)

if volwma>0 then
 r = 100-(volwma)*2
 g = 150+abs(volwma)*2
else
 r = 150+abs(volwma)*2
 g = 100-abs(volwma)*2
endif

RETURN volwma coloured(r,g,0) style(histogram) as "VOLUME ADJUSTED MOMENTUM", signal style(line,2) as "Signal line"