BERNOULLI DYNAMICS Trading Guide

Last updated: March 3, 2026

The Bernoulli Dynamics indicator models market movement via the principles of fluid dynamics and energy (Kinetic vs Potential). It decomposes price/volume action into "Up" and "Down" energy vectors to calculate an absolute Market Pressure (MP).

What does the indicator show?

  • MP Up / MP Down: The primary oscillating indicator lines that represent internal Market Pressure. Surges in MP often precede large volatile moves.
  • Zero/Baseline: A dashed grey horizontal line serving as the equilibrium point.
  • Energy Channels: Hidden by default, raw Kinetic Energy (KE) and Potential Energy (PE) lines can be used to view the actual energy composition.

Key Settings

  • Period (N): The core parameter used for calculating the True Range RMA, defining the rolling window for the maximum energy decay models.

How to use Strategy Parameters (Condition Source)

Within the Strategy Tester module, you can leverage the data from this indicator to create powerful logical conditions for trade entries and exits.

1. Market Pressure (MP) Lines

The MP numbers are effectively measurements of accumulated "energy" waiting to explode or currently pushing the trend.

  • MP Up — Upward market pressure numerical value.
  • MP Down — Downward market pressure numerical value.
  • KE Up / KE Down & PE Up / PE Down — Raw decomposition lines of Kinetic (velocity) and Potential (displacement) market energy.

Strategy Example: A breakout momentum strategy could wait for consolidation and enter Long when MP Up crosses_above MP Down.

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