Description

What Does the Average Speed Indicator Do?

The indicator calculates the speed of price by measuring the distance price travels over time and converts it into points-per-minute. It also computes the average speed using an arithmetic mean over a defined number of days. This helps traders understand how active or quiet the market is at any moment. It is useful for momentum analysis, breakout confirmation, and smart trade timing.

The indicator provides a mathematical calculation of price speed and average speed using point-based measurements. It is designed for MT5 traders who want clear numerical insight into market activity. The indicator updates every minute and shows consistent readings even in quiet markets

How Does the Indicator Measure Candle Speed?

The tool calculates speed using Galileo’s formula of distance divided by time. In trading, distance is taken as the difference in price, and time is measured in minutes to avoid unnecessary noise. The indicator displays this speed directly on your chart, allowing you to see how quickly the price is moving in real time.

Why Should Traders Use This Indicator?

Traders use the Average Speed Indicator to filter trades during low-volatility sessions, confirm entries during strong momentum, and identify fast price moves that may signal breakouts or reversals. It gives a clean numerical view of market speed, making decision-making more precise.

How can Traders Track Candle Speed and Market Momentum Using an Average Speed Indicator

Traders can track candle speed and market momentum using an Average Speed Indicator by measuring how fast prices move within each candle. The indicator calculates the average movement over a set number of candles, helping traders see when the market is becoming active or slowing down. A sudden increase in candle speed often signals stronger market momentum, which may point to a possible breakout. This makes it easier for traders to recognize shifts in volatility early.

The Average Speed Indicator also helps traders confirm the strength behind price movements. When the average speed rises along with price direction, it suggests that buyers or sellers are firmly in control. If speed slows down, it may signal hesitation or a potential reversal. By combining these observations with support and resistance levels, traders can make more confident decisions about entering or exiting trades.

Advantages

• Measures real-time candle speed in points-per-minute.

• Helps identify strong momentum before entering trades.

• Supports breakout confirmation by showing rapid price movement.

• Filters trades during slow and low-volatility sessions.

• Works well with trend-following and momentum strategies.

• Helps scalpers detect fast market conditions quickly.

• Reduces false entries caused by flat price action.

• Provides clean numerical data instead of visual guessing.

• Useful across all timeframes and market conditions.

• Enhances precision in trade timing and decision-making.

Features

• Real-time candle speed calculation.

• Average speed computed using the arithmetic mean.

• Speed displayed in clear point-per-minute format.

• Adjustable period for average speed days.

• Lightweight coding for fast indicator performance.

• Compatible with all MT5 timeframes.

• Works on Forex, commodities, indices, and crypto.

• Provides stable readings even when price movement is minimal.

• Easy-to-understand data output on chart.

• No repainting and no lag in calculations.

How to Trade

Use the indicator by comparing current candle speed with the average speed. When current speed rises above the average, treat it as a momentum signal and trade in the direction of the prevailing trend. Avoid entries when speed stays below average, as this shows weak market activity. Use the speed spike as confirmation before entering breakouts. Keep stops tighter during high-speed conditions to protect profits.

For reversals, watch for sudden speed drops after a strong move, as this often signals exhaustion. Combine the speed reading with key levels such as support, resistance, or session highs. If speed collapses near these zones, prepare for a pullback or reversal setup. Stay out of the market when both current and average speed are flat. Use speed behavior to time entries and exits with greater precision.

Formula 

Price Speed Formula

  V =  DT

• D = distance between price values

• T = time in minutes

• v = speed in points/minute

Average Speed (Arithmetic Mean):

AM = a1+a2+a3……+ann
 

• a = speed values

• n = number of days

• AM = average speed in points/minute

Conclusion

The Average Speed Indicator for MT5 gives traders a simple and accurate way to measure how fast price is moving. It uses clear mathematical formulas to show candle speed and average speed directly on the chart. This helps traders understand market momentum, avoid slow sessions, and choose better trade entries. It is a reliable tool for both beginner and professional traders who need precise speed data in their trading system.

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