This technical indicator is a kind of rate of change oscillator made of 2 T3 moving average. It compares the momentum of the 2 curves between the current and the previous period. The first curve is calculated upon the period and the complete factor (“vFactor” parameter) and the second one with an half of this factor.

It results a smoothed oscillator that can be traded almost like a MACD. An optional signal line could be added to give clear entries when the oscillator cross it.

//PRC_T2 Velocity | indicator
//23.11.2016
//Nicolas @ www.prorealcode.com
//Sharing ProRealTime knowledge
//converted and adapted from Metatrader5 version

// --- parameters
//period= 14
//vfactor=1.0

Data=customclose

x1=(exponentialaverage[period](Data))*(1+vfactor)
x2=(exponentialaverage[period](exponentialaverage[period](Data)))*vfactor
gd=x1-x2
x11=(exponentialaverage[period](gd))*(1+vfactor)
x21=(exponentialaverage[period](exponentialaverage[period](gd)))*vfactor
gd1=x11-x21
x12=(exponentialaverage[period](gd1))*(1+vfactor)
x22=(exponentialaverage[period](exponentialaverage[period](gd1)))*vfactor
first=x12-x22

y1=(exponentialaverage[period](Data))*(1+vfactor/2)
y2=(exponentialaverage[period](exponentialaverage[period](Data)))*vfactor/2
ygd=y1-y2
y11=(exponentialaverage[period](ygd))*(1+vfactor/2)
y21=(exponentialaverage[period](exponentialaverage[period](ygd)))*vfactor/2
ygd1=y11-y21
y12=(exponentialaverage[period](ygd1))*(1+vfactor/2)
y22=(exponentialaverage[period](exponentialaverage[period](ygd1)))*vfactor/2
second=y12-y22

S = first - second[1]

return S as "T3 Velocity", 0 as "level 0"