HAPICICIDIFFCG (Central Intelligence Difference with Color Gradient)
Purpose: Measures the “momentum of momentum” (acceleration) to identify reversals in futures trading, ideal for gap-up and gap-down scenarios.
Description:
Builds on Hamzei Analytics’ Central Intelligence (CI) algorithm, where price is distance, CI is velocity, and CI Diff is acceleration—a second-level derivative.
Plots the difference between CI and Smoothed CI as a histogram, using limit theory to solve for momentum and directional bias simultaneously.
Signals reversals through double tops or double bottoms on a scale of -50 to +50, with thresholds at ±10, ±20, ±30 indicating overbought/oversold conditions.
Example: A double top above +30 suggests a potential price reversal after a gap-up.
NinjaTrader Use:
Displayed as a histogram (green/red bars) with oscillating lines (red, white, teal) in a NinjaTrader subgraph, with thresholds at ±10, ±20, ±30.
Integrates with RadarScreen to scan for double top/bottom patterns across instruments.
Customizable parameters (e.g., lookback periods: 20, 15) for sensitivity adjustments.
Practical Example:
On an ES chart for June 25th, HAPICICIDIFFCG forms a double top above +30 around 08:30, signaling overbought conditions after a gap-up to 5680.
Price reverses, dropping to 5660 by 09:30 as the indicator falls below -20, offering a 20-point short trade.
