--- title: "Intraday Momentum Index: Formula" description: "Tushar Chande's IMI applies the RSI idea to the candle body (close minus open) instead of close-to-close change. It sums up-bar and down-bar bodies over a..." canonical: https://www.getswoopr.com/indicators/momentum/intraday-momentum-index/ source: "Swoopr Investment: https://www.getswoopr.com" --- ## Direct Answer > Tushar Chande's IMI applies the RSI idea to the candle body (close minus open) instead of close-to-close change. It sums up-bar and down-bar bodies over a window to show whether intraday moves skew upward or downward. It ranges from 0 to 100. # Intraday Momentum Index: Formula, Meaning, Signals, Examples and How to Use It ## How Is Intraday Momentum Index Calculated? Tushar Chande's IMI applies the RSI idea to the candle body (close minus open) instead of close-to-close change. It sums up-bar and down-bar bodies over a window to show whether intraday moves skew upward or downward. **Formula:** `IMI = 100 * Sum(Close - Open on up bars) / (Sum(Close - Open on up bars) + Sum(Open - Close on down bars)) over n bars` **Inputs:** - Open and close of each bar - Lookback n (14 is a common setting) **Worked example.** If up-bar bodies total 9 points and down-bar bodies total 6 points, the IMI is 60.0. The inputs are illustrative numbers, not market data. **Reading it.** It ranges from 0 to 100. Readings above 50 mean up-bar bodies outweighed down-bar bodies. High and low thresholds such as 70 and 30 are often used to flag stretched conditions. **Limits.** Because it ignores gaps between the prior close and the next open, overnight moves are invisible to it. As with RSI, extreme readings can persist during a strong trend. ## What is Intraday Momentum Index? Tushar Chande's IMI applies the RSI idea to the candle body (close minus open) instead of close-to-close change. It sums up-bar and down-bar bodies over a window to show whether intraday moves skew upward or downward. ## How to use Intraday Momentum Index It ranges from 0 to 100. Readings above 50 mean up-bar bodies outweighed down-bar bodies. High and low thresholds such as 70 and 30 are often used to flag stretched conditions. A reading alone is never a buy or sell signal; it needs context from price structure, volume, volatility and the broader market regime. ## Strengths - Basing the sums on candle bodies, close minus open, measures buying and selling pressure within each session rather than between sessions. - The 0 to 100 construction mirrors RSI, so a reader who knows RSI levels can interpret it while it uses a different price relationship. - Reproducible when the formula and data convention are fixed. ## Weaknesses and limitations - A bar that opens and closes at the same price contributes nothing, even if it traveled a long range between those two points. - It needs a reliable opening price, and in markets that trade around the clock the definition of the open is itself a convention. - Correlated indicators can create false confidence by repeating the same underlying information. ## Editorial and risk note This page is educational content, not individualized investment advice. It should not imply guaranteed prediction, accuracy or outperformance. ## Frequently Asked Questions Is Intraday Momentum Index a buy or sell signal? No. It ranges from 0 to 100. Because it ignores gaps between the prior close and the next open, overnight moves are invisible to it. A trade built on it still needs a trigger, an invalidation rule, a position size and realistic execution assumptions. What is the best setting for Intraday Momentum Index? Intraday Momentum Index takes these inputs: open and close of each bar; lookback n (14 is a common setting). There is no universal best setting for the tunable ones, so test them across instruments, regimes and out-of-sample periods and favor stable parameter regions over one historical winner. Can Intraday Momentum Index be used by itself? Because it ignores gaps between the prior close and the next open, overnight moves are invisible to it. As with RSI, extreme readings can persist during a strong trend. For that reason it is read next to measures of direction, participation, valuation, liquidity and risk, not alone. Does Intraday Momentum Index work on every timeframe? The calculation (IMI = 100 * Sum(Close - Open on up bars) / (Sum(Close - Open on up bars) + Sum(Open - Close on down bars)) over n bars) can be run on any bar size, but behavior is not portable: a reading on a five-minute chart describes a very different market window from the same reading on a daily chart. Validate the exact timeframe before relying on it. Why does Intraday Momentum Index give false signals? A bar that opens and closes at the same price contributes nothing, even if it traveled a long range between those two points. It needs a reliable opening price, and in markets that trade around the clock the definition of the open is itself a convention. Lag, noise and regime changes add to this, because market participants react to new information after the reading is calculated. How should Intraday Momentum Index be backtested? Rebuild Intraday Momentum Index from open and close of each bar using point-in-time data, write the rules before testing, include delisted securities where relevant, model realistic fills and costs, reserve a validation sample and compare with a simpler baseline. S Swoopr Editorial Team The Swoopr Editorial Team produces independent investment education, research, and tools for understanding markets, evaluating opportunities, and managing risk. All content is educational only and does not constitute personalized investment advice. See our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/).