Velocity [Vel]

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The Velocity function calculates the velocity (speed) with which a field is changing over a given period of time by comparing the current value to a previous value. Parameters ------------------ Data          The data to use in the calculation. This is typically a field in a data series or a calculated value. Period        The number of bars of data to include in the calculation, not including the current value.                   For example, a period of 3 compares the current value with the value three bars ago. Function Value ------------------------ The velocity is calculated by taking the change in value of the data over a given period and dividing it by the size of that period. This is the same as drawing a line through these two points and calculating the slope of that line. The velocity at the beginning of a data series is not defined until there are enough values to fill the given period. Close     Vel(Close,2) ---------------------------------    2    3    4                1             <--- The value increased by 1 each bar (4-2)/2.    6                1.5          <--- The value increased by 1.5 each bar (6-3)/2. Usage ----------- The velocity is useful for tracking the speed with which data, such as the closing price, is changing. It can be used to detect an increase or decrease in interest in a security. As the velocity of the price decreases, the amount by which it is changing is decreasing, indicating less new interest in the current direction.