Description
The PMO Strategy is based on the signals provided by the Price Momentum Oscillator. The Price Momentum oscillator is a study developed by Carl Swenlin and is essentially the one-bar rate of change (relative momentum) consequently smoothed by two exponential moving averages. The signal line is a third exponential moving average of the double-smoothed rate of change.
The strategy adds a simulated buy order when the main line crosses above the signal line. When the main line crosses below the signal line, a simulated sell order is added.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price to be used in the calculation of PMO. |
length1
|
The length of the first exponential moving average to smooth the rate of change with. |
length2
|
The length of the second exponential moving average to smooth the rate of change with. |
signal length
|
The length of the exponential moving average to be used as the signal line. |