Description
Polychromatic Momentum is a generalized Momentum study considering a number of Momentum values controlled by the length input. The greatest weight is given to the most recent Momentum value, while the precedent values are given lesser weight. Each Momentum value is assigned weight equal to inverse square root of Momentum distance (number of bars prior to the current bar). Then the sum of the weighted Momentum values is divided by the sum of the square roots.
It is considered a Buy signal when the plot surpasses the Buy level, and a Sell signal if it falls below the Sell level.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price used to calculate the Polychromatic Momentum. |
length
|
The number of bars used to calculate the Polychromatic Momentum. |
bxo
|
The Polychromatic Momentum buy level. |
sxo
|
The Polychromatic Momentum sell level. |
Plots
| Plot | Description |
|---|---|
PM
|
Polychromatic Momentum. |
BuyLevel
|
Buying level, defined by "bxo" input. |
SellLevel
|
Selling level, defined by "sxo" input. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.