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Strong

Traders Toolbox: Momentum Revisited...

Trader's Toolbox

At MarketClub our mission is to help you become a better trader. Our passion is creating superior trading tools to help you achieve your goals -- no matter which way the markets move -- with objective and unbiased recommendations not available from brokers.

The Trader's Toolbox posts are just another free resource from MarketClub.

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"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.

Comments

  1. Doctor Stock says:

    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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