I found this Composite Momentum indicator code in an Italian forum recently. It has raise some interest over years, so that’s why I add it to the Library. This oscillator seems quite interesting for picking stock that show recent momentum raise.
To buy stocks, the author identify the lowest levels of the indicator to be the “opportunity zone”, between -80 to -50, while the highest levels are the dangerous zone to avoid initiate new long orders on market.
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k=4 media1=average[3](Close) media2=average[9](close) Mom=exponentialaverage[1]((media1-media2)/media1)*100 diffMOM=MOM-MOM[1] If MOM>MOM[1] then temp1=diffMOM else temp1=0 endif If MOM<MOM[1] then temp2=diffMOM else temp2=0 endif sumtemp1=summation[5](temp1) sumtemp2=summation[5](temp2) abssumdiff=summation[5](abs(diffMOM)) aa=((sumtemp1[1]-(sumtemp1[1]/5)+temp1)/(abssumdiff[1]-(abssumdiff[1]/5)+abs(diffmom))*100) bb=((sumtemp2[1]-(sumtemp2[1]/5)+temp2)/(abssumdiff[1]-(abssumdiff[1]/5)+abs(diffmom))*100) cc=aa-abs(bb) key=ExponentialAverage[3](cc) k=((close-lowest[5](low))/(highest[5](high)-lowest[5](low)))*100 d=average[3](k) xtl=WeightedAverage[3](d)*2-100 Composite=WeightedAverage[2]((2*key+xtl)/3) l1=50 l2=-50 linea1=80 linea2=-80 linea3=0 return linea1,linea2,linea3,l1,l2,Composite |
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bonjour à tous
J’utilise cet indicateur depuis plusieurs mois, une fois règlé “K” à sa convenance , on peut en tenir compte car il renvoie de bons signaux. l’Italiano Francesco est un tout bon !
bons trades