Module 07 / Lesson 2 / 10 min
Momentum: DMI/ADX, Volume, BBWP
What you will learnExplain how momentum and volatility state earn points (2 + 1 + 3).
DMI / ADX — 2 points
Direction and trend strength. DMI says which side is in control; ADX says how strongly. The dimension pays when directional control agrees with the setup — a reversal long earns these points when the bearish push is exhausting in a measurable way, not just visually. Panel read: DMI bull / bear / chop plus the ADX value.
Volume — 1 point
The confirmation candle must show participation — at least 80% of the volume moving average. A reclaim on dead volume is a drift, not a decision. One point, because volume confirms but rarely leads.
BBWP — 3 points, tied for heaviest
Bollinger Band Width Percentile — the volatility regime gauge. It answers: how compressed is this market relative to its own recent history? Compressed (cold) markets are loaded springs — reversals fired from compression travel. The dimension pays maximum from cold, less as volatility builds, and nothing when the market is already hot — because by then the energy is spent and you are late. Panel read: BBWP %.
Why BBWP earns 3: the same sweep is worth more from compression than from exhaustion. Volatility state is the multiplier on every other dimension, so it carries event-level weight.
Checkpoint
Answer all questions correctly to mark this lesson reviewed on this device. This local check is not completion evidence.
1. BBWP pays ZERO when the market is:
2. Volume confirmation requires at least:
3. Why does BBWP carry event-level weight?