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Messuring the differnce in momentum between an indicator and price


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Messuring the differnce in momentum between an indicator and price

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  #1 (permalink)
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Does somebody know some kind of an indicator that messured the differenz of the momentum of an indicator and the momentum of the price movemend.

For example: If you have an RSI that is slowly rising but the price is rising fast or the indicator is flat and the price is rising or falling.

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So you are basically looking for an indicator plotting the difference of slope of two input indicators?

vvhg

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not of 2 indicators i am looking for the differens of momentum between one indicator and the momentum of price.

Like is the way of movement in price is big and the way of movement in the indicator is small compare to the normal movement.

i hope it is clear

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I don't know such an indicator, but coding it wouldn't be too difficult.
I still think that a fast moving average would be much better as input than price itself, you would need to iron out the zig zag a bit...

vvhg

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as i told you i like to do this with the smi_2 indicator here at futures.io (formerly BMT). Bu t i am not able to code so if you like give me a hand please.

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I played around with it, but it doesn't make much sense to me....(it's the thick red line).


vvhg

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try it on a 55tick 3 wicked linebrake chart

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on CL?

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fossil View Post
Does somebody know some kind of an indicator that messured the differenz of the momentum of an indicator and the momentum of the price movemend.

For example: If you have an RSI that is slowly rising but the price is rising fast or the indicator is flat and the price is rising or falling.

You cannot directly compare momentum to the relative change of an indicator value. What can be done is to compare the sign of momentum to the relative change of the indicator value. This concept is well know in technical analysis and called a divergence.

Example: If momentum is up (as detected by a higher high of price) but the RSI decreases (as detected by a lower high), this would be a divergence.

You can use indicators to detect divergences, but you can also detect them by looking at price itself. Typically such a divergence comes as a wedge or a 3-push pattern.

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Fat Tails View Post
You cannot directly compare momentum to the relative change of an indicator value. What can be done is to compare the sign of momentum to the relative change of the indicator value. This concept is well know in technical analysis and called a divergence.

Example: If momentum is up (as detected by a higher high of price) but the RSI decreases (as detected by a lower high), this would be a divergence.

You can use indicators to detect divergences, but you can also detect them by looking at price itself. Typically such a divergence comes as a wedge or a 3-push pattern.

I think you are right. The problem here is that the indicator is an oscillator and price is not...


vvhg

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FatTails is right Divergence are powerfull but i am looking as well for situation like the one in the picture when the price is rising and the indicator not

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There will be many occasions were this is the case as the indicator is oscillating (and it's the reason why oscillators don't work that well in trending markets). Apply that indicator to a chart and have a thorough look. If you exactly know what you want to do, I will try to help.

vvhg

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fossil View Post
FatTails is right Divergence are powerfull but i am looking as well for situation like the one in the picture when the price is rising and the indicator not

If you switch to a smaller timeframe, you will find that this is indeed a divergence.

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it is not easy to tell but in the picture you see the price rising straigtht up but the indicator slope is going to weaken.
Also der Preis steigt steil an aber der Indikator wird immer flacher.
Es geht ja eigentlich um das Verhältnis der Ticks pro / Kerze (Preis) zu den der Punkte / Kerze im Indikator.
Hat die durchschnittliche Kerze 10 Ticks und die letzte 12 Ticks aber der Indikator durchschnittlich 10 Punkte / Kerze und die letzte 8 dann zeigt das beginnende schwäche. Und das würde ich gerne angezeigt bekommen.
Dazu war Deine Idee mit dem SMA für den Preis schon interessant.


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fossil View Post
it is not easy to tell but in the picture you see the price rising straigtht up but the indicator slope is going to weaken.
Also der Preis steigt steil an aber der Indikator wird immer flacher.
Es geht ja eigentlich um das Verhältnis der Ticks pro / Kerze (Preis) zu den der Punkte / Kerze im Indikator.
Hat die durchschnittliche Kerze 10 Ticks und die letzte 12 Ticks aber der Indikator durchschnittlich 10 Punkte / Kerze und die letzte 8 dann zeigt das beginnende schwäche. Und das würde ich gerne angezeigt bekommen.
Dazu war Deine Idee mit dem SMA für den Preis schon interessant.

There is a section in this forum, where you can post in German.

German Traders - Big Mike's Trading Forum

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Hey vvhg,
Where did you get the "slope1" indicator that you posted a picture of in post 6?

Thanks
-Steve

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Hey vvhg,
Where did you get the "slope1" indicator that you posted a picture of in post 6?

Thanks
-Steve

I coded that, though I am sure it's not the only one out there. It's really only one line of code, I can post it later if you want it.

vvhgp

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Here is the slope indicator.

vvhg

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vvhg View Post
Here is the slope indicator.

vvhg

Thank you, i look over it and give you a feedback!

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vvhg View Post
Here is the slope indicator.

vvhg

Thank you kind sir!!! Will test it out when I get home!!

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Maybe you could compare the oscillator(rsi etc) to "Detrended" price, that way you are comparing 2 oscillators....
(Maybe divide one by the other, for relative strength, etc).

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