Intraday Momentum Index

The Intraday Momentum Indicator, conceived by Tushar Chande, has a construction very similar to Welles Wilder’s RSI: it differs from it in that it takes into account not the difference between today’s CLOSE and the previous day’s CLOSE (interday momentum) but the difference between the CLOSE and the OPEN of today (intraday momentum), or, essentially, the length and the color of the candle that identifies the seat. For the rest, RSI and IMI are basically identical.
Since the intraday momentum reverses its course before the interday momentum, this will be visible from the color and shape of the candles, but even before from the behavior of the Intraday Momentum Indicator, which will tend to flatten first, and then move away from the area of excess, to get closer to the central area. That is, a market – or a stock – which, after a decline, starts an inversion formation that precedes the subsequent upside, will see its Intraday Mmomentum Indicator go from low values ​​to below 30, to values ​​that will tend towards towards 70, for the succession of the first green candles to the red candles; and vice versa, a market in the process of topping will begin to present, first timidly, then more and more decisively, the red candles: in this case we will have an Intraday Momentum Indicator which, when it reaches the upper band of oscillation, will bend downwards, heading towards 30.