Momentum indicator

droesparky · #1 (**permalink**) 03-08-2007, 03:11 PM

Can someone guide me to some info on the use of this wild looking thing, I understand it can help determine the change in the slop of a MA.

newdigital · #2 (**permalink**) 03-08-2007, 04:08 PM

- Divergence Indicator: original thread with explanation, indicators and so on;

- Divergence & Convergence: original thread;

- Digital Twin Momentum indicator is here;

- FTLM and STLM (Fast Trend Line Momentum indicator and Slow Trend Line Momentum indicator) is here;

Stochastic Momentum Indicator (Index):
- original thread: Stochastic Momentum Indicator (Index)
- fixed indicator: http://www.forex-tsd.com/62555-post37.html
See this post also for more MTF ema_momentum_cci indicators.
- RSI & Momentum Color+Alarm: RSI & Momentum Color+Alarm

- Chande Momentum Oscillator: the version #1 from Igorad.

- RSI & Momentum Color+Alarm: original thread.

Quote:

Momentum
Overview

The Momentum indicator measures the amount that
a security's price has changed over a given time span.

Interpretation

The interpretation of the Momentum indicator is identical
to the interpretation of the Price ROC. Both indicators display
the rate-of-change of a security's price. However,
the Price ROC indicator displays the rate-of-change as
a percentage whereas the Momentum indicator displays
the rate-of-change as a ratio.

There are basically two ways to use the Momentum indicator:

You can use the Momentum indicator as a trend-following
oscillator similar to the MACD (this is the method I prefer).
Buy when the indicator bottoms and turns up and sell when
the indicator peaks and turns down. You may want to plot
a short-term (e.g., 9-period) moving average of the indicator
to determine when it is bottoming or peaking.

If the Momentum indicator reaches extremely high or
low values (relative to its historical values), you should
assume a continuation of the current trend. For example,
if the Momentum indicator reaches extremely high values
and then turns down, you should assume prices will probably
go still higher. In either case, only trade after prices confirm
the signal generated by the indicator (e.g., if prices peak
and turn down, wait for prices to begin to fall before selling).

You can also use the Momentum indicator as a leading indicator.
This method assumes that market tops are typically identified
by a rapid price increase (when everyone expects prices to go higher)
and that market bottoms typically end with rapid price declines
(when everyone wants to get out). This is often the case,
but it is also a broad generalization.

As a market peaks, the Momentum indicator will climb sharply
and then fall off-- diverging from the continued upward or
sideways movement of the price. Similarly, at a market bottom,
Momentum will drop sharply and then begin to climb well ahead
of prices. Both of these situations result in divergences between
the indicator and prices.

droesparky · #3 (**permalink**) 03-09-2007, 06:47 AM

Thanks Newdigital I went thru this material and will go over it a few more times this week end.

newdigital · #4 (**permalink**) 02-10-2008, 03:32 PM

qq EA:
- public thread.
- elite section thread.

mladen · #5 (**permalink**) 07-31-2008, 10:04 AM

Anchored momentum indicator

Originally developed by Rudy Stefenel
Technical analysis of Stocks and Commodities (TASC)
february 1998 - article : "Anchored momentum"

Of parameters :
MomentumType :
0 - General (picture 1)
1 - Most (picture 2)
2 - General with EMA (picture 3)
3 - Most with EMA (picture 4)

BLUR71 · #6 (**permalink**) 07-31-2008, 11:37 AM

thx mladen

awesome work as usual.

regards

blur

darkkiller · #7 (**permalink**) 08-01-2008, 01:46 PM

Thanks mladen,can u tell us about this 4 type,what the different

Quote:

0 - General (picture 1)
1 - Most (picture 2)
2 - General with EMA (picture 3)
3 - Most with EMA (picture 4)

mladen · #8 (**permalink**) 08-01-2008, 04:19 PM

Document from the creator of the original indicator
RapidShare: Easy Filehosting
10 pages, he does a rather good job explaining everything

regards
mladen

Quote:

Originally Posted by darkkiller

Thanks mladen,can u tell us about this 4 type,what the different

fxbs · #9 (**permalink**) 08-01-2008, 11:30 PM

thank you Mladen
pdf doc went w/o any problem - thx again

darkkiller · #10 (**permalink**) 08-02-2008, 09:19 AM

thanks mladen

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