RedK Strength of Movement

This is a quick indicator i wrote to inspect the strength of price movement and show when what i consider to be "a quality trend" has been established. the code is open and commented - the "math concept" is really simple and i'm not sure if this has already been coded before :) - my apologies if it was.

my main goal was to identify opportunities to establish "simple, straight" long call or put positions for the stocks i follow

- what i noticed thru the years is that some opportunities will present themselves to take these basic option positions but they are "rare", maybe once or twice a year -- for example, in 2020, TSLA presented 2 such opportunities around the split and the index inclusion - so i needed an indicator that exposes these setups. if you can time yourself with these setups, they are incredibly rewarding.

these setups will happen when the SoM reaches 100% (in either directions) while it's in agreement with the prevailing trend (hence the need to use the SoM with a MACD or something like the Ribbon) - if the SoM hits the 100% in one direction and the trend is not in the same direction, that signal is invalid. see the chart for some examples.

a quick useful observation, is that the SoM will sometimes also act as a leading indicator for an imminent change in trend direction, which makes sense .. given that the SoM relies on exposing the "relative" movement or change of price (close for example) - thru the use of the stoch () function - and that this "change value" will usually expand in the direction of a strong trend and starts to contract ahead of a reversal.

Please fee free to use this code, leverage the indicator, or give feedback
i may come back later and update this with some features (like making this volume-weighted)

best of luck!
Release Notes: This v2 of the Strength of Movement (Redk_SoM) introduces couple of enhancements for accuracy and to become less confusing to work with

1. the price change used in the calculation is a ratio of previous bar (think of it as a move of 2.5%, 3%, ..etc) rather than an absolute value. technically this would be more accurate and maps to the way we regularly refer to price changes in trading

2. in SoM v1, you may have seen the SoM going negative while the price action is still moving up - that was not wrong, it simply meant that the price change is at the lowest value when compared to the highest and lowest change values observed withing the length of bars - but it was mentally/visually confusing to deal with - especially if used on a Renko chart - in v2, the stoch() calculation was updated with a simple adjustment to avoid that visual confusion (i hope i was able to explain that part -- see snapshot for more)

let me know in the comments if i missed any points..
Release Notes: v3
- fixes the logic when calculating the ratio of movement when the range > 2
- code change to replace "transp =" from plot statements
- other slight code & visual clean ups
Release Notes: - adjusted defaults and updated average strength calculation to avoid piercing bars messing things up
Release Notes: v4 adds couple of interesting features:

- bring back the original algo for calculating the SoM - which took the displacement between highest price and lowest price - but only as option. the default will be the calculation method from v3 (simple method, takes start - end price)
** i was curious to see the difference side-by-side. cause the first method accounts for false breakouts - so it shows "effort" rather than simple "distance" -- if that makes sense.
** if using a range = 2, changing this option doesn't make any difference (cause both calculation methods will be equal in that scenario)

- changed default colors from Green/Red - so i can overlay the SoM on top of other indicators is use (mainly the TPX)

- added a signal (dots) when the SoM (before smoothing) hits +100 or -100 .. this immediately exposes the extreme cases i'm looking for with SoM - as in the chart below

Release Notes: Quick v5 with minor updates:
- Zero Line, Upper Border and Lower Border Lines are now editable -- as requested
- Default Precision set to 0 for simplicity
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