How to measure the strength of a cross over ? Momentum ?

• 03/13/2019 at 10:20 AM #93512
  GraHal

  mancunian wrote:

  which is not an indicator but just a simple number

  Yes I can see your line of thinking, but as this number in this usage is a difference between 2 Indicators and is either – increasing, static or decreasing – then the number in this usage is an Indicator.

  It is an Indicator in this usage because it gives an indication of whether Price is rising, static or falling.

  

  GraHal

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  03/13/2019 at 10:49 AM #93521
  GraHal

  You’ve got me on the same tack now!

  I agree that if the result of the Momentum calculation is a single figure then how does that give a sense of momentum?

  Momentum has to be a comparison one period with another or in relation to time.

   

  

  GraHal

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  03/13/2019 at 11:10 AM #93523
  mancunian

  Thank you.

  Yes I understand that but e.g. two moving averages with values 100 and 90 at a point in time

  MaShort = Average[20]  result =100

  MaLong = Average[50] result =90

  then the difference is 100-90=10 which I understand will change with time and so will indicate what is happening with price just by computing my own simple subtraction without using in built PRT Momentum indicator

  but using the inbuilt function within PRT  “Momentum” surely Momentum(10) is incorrect syntax , calculates and means nothing as 10 is not an indicator but a number?

  The manual gives such an example:

  REM Calculate the short-term ma
  MaShort = Average[20]
  REM Calculate the long-term ma
  MaLong = Average[50]
  REM Determine the relative speed of the short MA to the long MA
  Speed = Momentum(MaLong – MaShort) * 100 / Close

  which surely is wrong?  The manual itself says the parameter for Momentum is an indicator and not a number!

   

  Surely the correct syntax is something like:

  Speed = (Momentum(Average[50]) – Momentum(Average[20])) * 100 / Close

  ?

  I am grateful for assistance as this is clear as mud from the manual and I am keen to measure the strength of cross overs

  

  mancunian

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  03/13/2019 at 11:17 AM #93525
  mancunian

  Note if you want to specify what time periods e.g. 10 for Momentum to use I believe the manual should state

   

  Speed = (Momentum[10](Average[50]) – Momentum[10](Average[20])) * 100 / Close

   

  I do believe the manual is wrong and furthermore Momentum is used incorrectly in pre written built in examples in the platform itself in the Screener for bullish and bearish crossovers which is worrying.

  Maybe I am wrong but I don’t think so – feedback welcome.

  

  mancunian

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  03/13/2019 at 12:04 PM #93529
  GraHal

  Just an idea … have you tried working your definition into an Indicator?

  Does it look logical on a Chart when compared to Price?

  

  GraHal

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  03/13/2019 at 12:22 PM #93531
  mancunian

  Grahal.

  I will try and experiment.

  Maybe the manual is correct as maybe as in my earlier post this is how the calculation is performed:

  speed = MOMENTUM[12](malong–mashort)

  is calculated as

  (malongcurrent – mashortcurrent) -(malong12periodsago-mashort12periodsago)

  i.e. PRT looks up the 2 mavs separately twice at 2 different time points before performing the subtraction rather than just subtracting the 2 values straight away in which case it would be correct and work!

   

   

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  GraHal

  

  mancunian

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  03/13/2019 at 1:20 PM #93534
  GraHal

  mancunian wrote:

  I will try and experiment.

  Often If I don’t understand something rather than spend ages theorising and deliberating, I try and work it into an Auto-System and backtest it on various timeframes on the DJI and also to GRAPH various bits of code.

  It can be quite exciting when I get a fantastic equity curve and I think … I’ve made it! Only to realise that I forgot to add a spread of 4 (if 24 hours trading on DJI).

  Anyway who knows … your definition may be the birth of a new Indicator, and better than PRT Momentum (even if PRT one does prove to be correct? 🙂

  

  GraHal

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