Directional Smoothed Momentum with Averages Filters

Directional momentum of average.
Conversion from Mladen Rakic MT5 version.
Enhanced with alerts, arrows and histogram.

What is the Directional Smoothed Momentum?

This technical indicator employs a calculation method based on deviation, distinguishing it from the conventional (MoM) Momentum calculation. The Momentum is determined by summing the absolute differences between the current price and the price from one period prior, which is then compared to the ratio of the current price to the price from several (N) periods ago.

In this version of the Momentum the indicator is now capable of utilizing filtered prices for its calculations. This adjustment significantly reduces the number of signals, including false signals, when the slope of momentum is employed for decision-making. As explained by Mladen, the resulting lag is deemed acceptable, as it can be readily verified by comparing this version with the built-in Momentum indicator using the same time period.