Momentum Overhaul

 10/01/25    12:01

So after losts of issues trying to get the momentum working with the angle of the line and encountering problem after problem I opted to instead implement industry standard methods for measuring momentum.  This doesn't affect our logic of entering trades based on the PV2 indicator but just means the momentum which reduces the MinLineDifference (distance between lines to enter trade) will be more reliable by using tried and true methods.  The industry standard for Forex is:

RSI                               ( Relative Strength Index )
RSI measures the speed and magnitude of recent price changes to determine overbought or oversold conditions.

MACD                         ( Moving Average Convergence Divergence )
MACD tracks the relationship between two moving averages of price, typically a 12-period and 26-period EMA (Exponential Moving Average).

Stochastic Oscillator
The stochastic oscillator compares a security’s closing price to its price range over a given period to identify momentum and potential reversals.


So these methods combined give a reliable measure of momentum that we will use when the PV2 lines converge.

Comments

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