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RT's,
In Bill Blau's book, Momentum, Price and Divergence. He points out that
a 300 period moving average of one day changes. or one day momenetum.
Mimics price. Check it out for yur self...
Then ......
Try taking the momentum of the momentum so to speak..
Filter the momentum of the momentum a couple of times with an
exponential moving average, say a 22 to 35 period and then smooth a
second time with say a five period ema...
It will stay on top of price. It won't lead it. Why would you want it
to lead price anyway? What if it leads price by a varying amount every
20 minutes. It would become of dubious value.
What it does is tell you that the price isn't accelerating anymore..
It can forewarn you of potential changes in price..
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