Purpose: Measures the rate of change of momentum (acceleration) to spot 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 capture momentum shifts and directional bias simultaneously.
Signals reversals through double tops or double bottoms, with significant readings around ±2 to ±4 indicating overbought/oversold conditions.
Example: A double bottom below -4 suggests a potential price reversal after a gap-down.
This indicator is a “Sister Indicator” to CI and is the front runner of what CI will be for the next few bars. Beyond that is a random occurrence.
NinjaTrader Use:
Displayed as a histogram in a NinjaTrader subgraph, with green bars (positive difference) and red bars (negative difference) around a zero line.
Integrates with RadarScreen to scan for double top/bottom patterns across instruments.
No inputs required, with a customizable scale for sensitivity adjustments.
Practical Example:
On an ES chart for June 25th, HAPICIDIFF forms a double bottom at -4 around 15:30, signaling oversold conditions after a gap-down to 5080.
Price reverses, rallying to 5100 by 16:00, offering a 20-point long trade.
