Short Case study on Intraday Momentum Index for 2022

Intraday Momentum Index:

This index is actually friendly among Intraday traders and has become best friend of every day trader. Started by Tushar Chande from book "New Technical Trader" in 1994. He had experienced of last 20 years in all forms of  stock market which help him build it.

Intraday Momentum Index is actually combination of Candlesticks and Relative Strength Index(RSI). Also known as IMI by pet name among traders it helps to find proper buy and sell directions. It's more important in technical analysis field.

It reveals the oversold and overbought market condition. There are also main terms used in these index they are OP and CP stands for Opening Price and Closing Price. Let me explain it clearly when CP is above then it's gaining day and when CP is below then it's loosing day.

It only works between one day and nothing to do with gap between 2 days. So only it is stick with Intraday. Green bodies conclude that IMI indicator is raising and price are above the level while red notifies of declining IMI Indicator and prices low down.

Intraday Momentum Index

Indicator No.

When Intraday Momentum Index is above 70 then it's bad signal while traders start selling and when IMI is below 30 or around it then they start buying. 

How the calculation is done?

Intraday Momentum Index is easily calculated as sum of gains on up days with divided by sum of gains on up days plus sum of losses on down days. Later on it is multiplied by 100 to find last valued. If it goes above 70 then it is over bought and is less than 30 then it is oversold.

This indicator is so common now in India and every app supports it. Top 5 apps like Zerodha, Upstox, Angel Broking, 5 paisa and Motilal Oswal and inbuild in it. 

The results of this indicators are calculated between 0 to 100. And then judged overvalued or bought according to it. It takes one input parameter that is the number of periods used to construct the up and down price change averages.

If the close goes above the open then it is said to be up day and if close is below the open then it is down day as per rule.

If you belong to market more than 5 years and know technical analysis very well then you can also combine other indicators like SMA, EMA, HMA and Super trend. 

It is more fluctuating than RSI. One suggestions I would like to give is that never ever used these indicator for long term investment. 

Here I am going to discuss the most successful Intraday trading indicator called “Intraday Momentum Index” which I have seen in my 4 years of Trading Career.

Here are our Intraday Momentum Index tips:

  • Trend Identification :- First you need to identify an overall trend of the market whether it is bullish or bearish.

  • Screening :- Second step is screening the stocks based on specific strategy or specific theme which is currently in news or in momentum.

  • Finding the leader :- In the third step you have to find the leader from the stocks which have screened. You can easily find the leader by using Technical Analysis.

  • From where to enter :- In this step you have to find the exact levels where the stock price will be in excessive demand on upside or downside.

  • Getting Confirmation :- After finding the exact levels of stock you have to check with your momentum indicators. One of the best indicator for checking strength is Macd. You can use other momentum indicators too.

  • Playing with an edge :- Once you get your stock with levels to play, you can bet with your Risk Management Strategy.



We would suggest every trader to use it wisely as it is most fluctuating, but if used properly then it is most accurate and promising indicator. It was invented by Legendary Tushar Chande. It is combination of Candle sticks and RSI. 

Experts say that it has helped then earn good amount and also it is supported by every company there. Intraday Momentum Index is gem you should try this once.

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