DV – Larry Williams Blast Off Indicator #

The “Larry Williams Blast Off” indicator calculates momentum by comparing the difference between the open and close prices to the high-low range of a bar. It then smooths these values using EMAs and applies color coding based on the momentum’s relation to user-defined thresholds. The final result includes the upper and lower thresholds, momentum, signal line, and color-coded momentum values.

Input Settings #

• Bar Smoothing Period – The number of bars (or periods) used to smooth the raw Bar Momentum (BOM) values. It controls the length of the exponential moving average (EMA) applied to the momentum calculation, reducing short-term noise and providing a clearer view of the underlying trend.
• Line Smoothing Period – The number of periods used to apply a second smoothing to the Bar Momentum (BOM) through another EMA. This creates a signal line that is even smoother than the original BOM, providing a more refined trend signal that is less sensitive to short-term fluctuations.
• Threshold Distance – A user-defined value that sets the boundaries for the Upper and Lower Thresholds. The Upper Threshold is equal to this value, while the Lower Threshold is its negative equivalent. These thresholds help identify overbought and oversold conditions by defining significant deviations in the BOM.

Style Selection #

• Upper Threshold – A predefined value that acts as the upper limit for the Bar Momentum (BOM). When BOM exceeds this threshold, it indicates significant bullish momentum. The threshold is derived from the user input for “Threshold Distance” and is applied to define the overbought region.
• Center Line – A reference line typically set at 0, which acts as the neutral midpoint for the Bar Momentum (BOM). The momentum is compared against this line to determine the direction of price movement. Values above indicate upward momentum, while values below indicate downward momentum.
• Lower Threshold – A predefined value that represents the lower limit for the Bar Momentum (BOM). When BOM falls below this threshold, it suggests significant bearish momentum. It is set as the negative equivalent of the “Threshold Distance” and is used to mark the oversold region.
• BOM – A measure of momentum based on the ratio between the difference in the close and open prices and the high-low range of a bar. The BOM reflects the strength of price movement within a bar, and its smoothed version is used for analysis.
  • Center Line – Refers to the zero line that separates positive and negative momentum. When BOM is near this line, it indicates a lack of strong directional momentum.
  • Above Upper Threshold – A condition where the BOM exceeds the Upper Threshold, indicating strong upward (bullish) momentum. The price movement is significant enough to be considered in an overbought condition.
  • Positive Momentum Bar – A condition where the BOM is positive but still below the Upper Threshold. It indicates upward (bullish) momentum.
  • Negative Momentum Bar – A condition where the BOM is negative but still above the Lower Threshold. This indicates downward (bearish) momentum.
  • Below Lower Threshold – A condition where the BOM drops below the Lower Threshold, indicating strong downward (bearish) momentum.