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Dan,
Here's one way of looking at it: Momentum is the buying and selling
pressure that "cycles" through a market in a fairly short time frame.
"Momentum indicators" tend to help in choppy markets. "1.gif" depicts
trades triggered by a momentum oscillator (StoRSI) and can "knock 'em dead"
in a choppy sideways market.
"2.gif" depicts a short and long moving average, applied to the same market.
Of course, the opposite is true in this situation. As long as the market
continues to "trend", the shorter moving average will keep you in a
position. Unlike momentum oscillators, moving average "crossovers" will
carve up your equity if the market decides to move sideways.
Take care,
Steve
www.cedarcreektrading.com
----- Original Message -----
From: Dan Harels <harelsdb@xxxxxxxxxxx>
To: <metastock@xxxxxxxxxxxxx>
Sent: Monday, February 04, 2002 10:34 AM
Subject: Re: momentum indicators, using also o-h-l
> Rudolf,
>
> I am not sure I understand the difference between momentum and trend.
> Please explain.
>
> Dan
>
>
> >From: rudolf stricker <lists@xxxxxxxxxxx>
> >Reply-To: metastock@xxxxxxxxxxxxx
> >To: metastock@xxxxxxxxxxxxx
> >Subject: Re: momentum indicators, using also o-h-l
> >Date: Sun, 03 Feb 2002 17:37:48 +0100
> >
> >On Thu, 31 Jan 2002 06:09:07 +0000, you wrote:
> >
> > >Check your Metastock Manual for interpretation of Qstick. It has about
a
> > >page of discussion. The manual says that Qstick is the moving average
of
> > >the difference between the open and close.
> >
> >So Qstick seemingly is rather a trend indicator than a momentum
> >indicator, (which I'm looking for, see the subject).
> >Maybe, I should start with a given momentum indicator e.g. Chande's
> >"Dynamic Momentum Index", and integrate o-h-l in an appropriate manner
> >into it...
> >
> >Is the formula for the DMI available somewhere?
> >
> >mfg rudolf stricker
> >| Disclaimer: The views of this user are strictly his own.
>
>
> _________________________________________________________________
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http://explorer.msn.com/intl.asp.
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