Q: Tips

- PRICE_CHANGE(1) is the simplest momentum filter — positive means bullish bar, negative means bearish - Use percentage-based changes (PRICE_CHANGE_PCT) for comparing across different instruments and prices - Large price changes often signal the start of trends or breakouts - Combine with volume indicators to distinguish between genuine moves and low-volume noise - Use multi-period price change to create momentum-based strategies: e.g., buy when PRICE_CHANGE(20) > 0 AND PRICE_CHANGE(5) > 0 (both

Question 1

What is Price Change?

Accepted Answer

Price Change is a simple yet powerful indicator that measures the difference between the current closing price and the closing price N bars ago. It quantifies momentum by showing how much price has moved over a specific lookback period, both in absolute terms and as a percentage.

Question 2

How it works

Accepted Answer

Price Change compares the current close to a historical close: ``` Change = Close - Close[N] Change_pct = (Close - Close[N]) / Close[N] * 100 ``` Where N is the lookback period (number of bars). - **Positive value** — price has increased over the period - **Negative value** — price has decreased over the period - **Zero** — price is unchanged

Question 3

Parameters

Accepted Answer

| Parameter | Default | Description | |-----------|---------|-------------| | Period | 1 | Number of bars to look back for comparison |

Question 4

Common period settings

Accepted Answer

| Period | Use case | |--------|----------| | 1 | Bar-to-bar change (momentum) | | 5 | Weekly change (on daily charts) | | 10 | Two-week change | | 20 | Monthly change (on daily charts) | | 60 | Quarterly change | | 252 | Annual change (on daily charts) |

Question 5

Example conditions

Accepted Answer

| Condition | Meaning | |-----------|---------| | `PRICE_CHANGE(1) > 0` | Current bar closed higher than previous bar | | `PRICE_CHANGE(1) 100` | Price increased by more than $100 over last 5 bars | | `PRICE_CHANGE(20) 2` | Price increased by more than 2% in one bar | | `PRICE_CHANGE_PCT(5) < -5` | Price dropped more than 5% over 5 bars |

Question 6

Tips

Accepted Answer

- PRICE_CHANGE(1) is the simplest momentum filter — positive means bullish bar, negative means bearish - Use percentage-based changes (PRICE_CHANGE_PCT) for comparing across different instruments and prices - Large price changes often signal the start of trends or breakouts - Combine with volume indicators to distinguish between genuine moves and low-volume noise - Use multi-period price change to create momentum-based strategies: e.g., buy when PRICE_CHANGE(20) > 0 AND PRICE_CHANGE(5) > 0 (both