Repulse Indicator

The Repulse indicator measures and represents as a curve the bullish and bearish momentum contained within each price.

Calculation Method

REPULSE = Exponential Moving Average(UP_BULL, P) - Exponential Moving Average(DOWN_BEAR, P)

where:

• UP_BULL: 100*(2*(CLOSE - LOW) + (CLOSE - OPEN))/CLOSE
• DOWN_BEAR: 100*(2*(HIGH - CLOSE) - (CLOSE - OPEN))/CLOSE
• P: Exponential moving average period

Example

Interpretation

It is a complementary indicator that should be compared to the evolution of prices. Its main advantage is that it is not tied to price movement like an RSI, a MACD, or a Stochastic indicator. It provides useful additional information about traders' confidence in the evolution of prices.

For futures trading, a good method consists of displaying Repulse(P1) on the same graph to examine very short-term trends, Repulse(5*P1) for the short term, and Repulse(15*P1) for the medium term.

For example, on a 1-minute intraday chart, one can see at a glance the 1-minute, 5-minute, and 15-minute trends.

The Repulse indicator provides good signals when it slows down in 15*P1, reverses in 5**P1, and has been diverging for some time in 1*P1 while the price trend accelerates and hits a horizontal support or resistance level.

These signals become very strong when they are combined with divergences on the Cycles indicator (displayed in 5 minutes or 3 minutes) and a significant increase in volume.