Market movement
VectorMomentum.
Read market movement through Vector and Momentum.
An algorithmic approach to tradable items in motion, using the concepts of force, velocity, acceleration, and direction.
Since 2017
The blue vector shows the current direction and velocity. The amber vector follows the accumulated motion with smoothing. Sigmoid controls the change in activity in this conceptual animation.
Vector & MomentumMethod
Where is the movement heading, and what sustains it?
Vector Momentum studies the movement of a tradable item. Its scope includes stocks and other traded assets, using concepts from physics to describe how movement develops and changes.
Vector describes direction and magnitude. Momentum examines how the movement builds and persists within the model. Together, they provide a way to compare changes in an item’s trading movement over time.
Vector
Describe the direction and magnitude of movement.
Momentum
Examine how movement gains strength, persists, or weakens.
In practice
When an item gains momentum
Is the item moving in a new direction, moving faster, or sustaining its existing momentum?
Compare the movement before and after a transition. Follow changes in Vector and Momentum to describe the direction, strength, and persistence of the flow.
Data & refinement
Improved through observation.
Data and observations from practical use inform how we describe movement, identify transitions, and refine the model.