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The Electronic Local method

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Market Wizard
Berlin, Europe
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
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tulanch View Post
If you're looking for a simple NT7 MOMDOT indicator, without programing you can create the desired output using NT7's SMA given the eqaution for MOMDOT is in fact based on the "TYPICAL" calculation.

Even simpler: You can download it here:

I had explained that it is a displaced SMA(3) as you confirmed above. Displaced moving averages were widely used 10 or 20 years ago, and they still are excellent trend filters. For example Joe diNapoli used them as well, for example

3X3 -> a SMA(3) displaced by 3 periods, would be the MomDots further displaced by two fields
7X5 -> a SMA(7) displaced by 5 periods
25X5 -> a SMA(25) displaced by 5 periods

These are useful trend filters or stop lines. Trigger lines - which are moving linear regression indicators or the SuperTrend, which uses both direction and volatility are other alternatives.

The chart below shows trigger lines versus the three displaced moving averages.

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The Electronic Local method-es-03-11-5-min-01_03_2011.jpg  
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