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The Trader's Toolbox posts are just another free resource from MarketClub.
"MarketClub is known for our “Trade Triangle” technology. However, if you have used other technical analysis indicators previously, you can use a combination of the studies and other techniques in conjunction with the “Trade Triangles” to further confirm trends.
Momentum measures the change in a commodity’s price with time. M = Pc-Pn where M = momentum, Pc = current period’s price and Pn = price n periods ago.
The length of time used for the prior period is a matter of personal preference and time horizon of the trader. A narrow window of less than five periods back would be short-term in nature while six to nine periods would be considered intermediate; 10 or more would be a longer time perspective...."
Revisit the Trader's Toolbox Post: "Momentum" here.
One thought on “Traders Toolbox: Momentum Revisited...”
I'm a huge believer in momentum... when it is strong in one direction or another, it seems 80% of stocks "follow" pace... so, paying attention to momentum can help one save and make money. I think this is one of the greatest strengths of the trade triangle strategy as I have seen... it gives a clear picture of momentum.
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