This is an indicator made of the linear regression applied to the rate of change of price (or momentum).
I made a simple signal line just by duplicating the first one within a period decay in the past, to make those 2 lines cross. You can add more periods decay to made signal smoother with less false entry.
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//parameters : //MOM = 10 //LR = 14 //decay = 1 MOMENT = Momentum[MOM](Close) LRMOM = LinearRegression[LR](MOMENT) LRMOMDECAY = LRMOM[DECAY] RETURN LRMOM,LRMOMDECAY |
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Really liking this indicator. Thanks
Moving your last response to this post. Thanks for conforming the code below. How does PRT/PRC code Momentum? Is it (C / CP) ?
Using the code above, LRMOM = LinearRegression [LR] (MOMENT) I get a volatile result. If I use
LRMOM = LinearRegression[LR] – (MOMENT) I get a smooth result.
Hence my question, please advise.
SB-FO • 17 hours ago #
Nicolas, can you share with me how PRT calculates LinearRegression ? Is it (3 * WeightedAverage Close X – 2 * AVERAGE Close X) X= Period?
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Nicolas • 8 hours ago #
The above code is the way it is calculated in PRT. However the exact indicator can be found here: https://www.prorealcode.com/prorealtime-indicators/standard-deviation-standard-error-linear-regression-channel/
It is obtained by substracting the x days before Close from today’s Close. X is the parameter associated with Momentum.
https://www.prorealcode.com/documentation/momentum/