Pulse measures the speed of changes in price and is a leading indicator of changes in trend.
Description
. The line often enough momentum ahead of a price effect, signaling the potential spread trend in the market.
. The momentum indicator may warn about the relative strength or weakness of the price movement in advance before the turning point.
. At extreme positive values of momentum implies condition perekuplennosti; at extreme negative values of - the state pereprodannosti.
The first signal was given for the sale of impulse when crossing the line of zero-down (first vertical dashed line). The signal for buying emerged at the intersection of impulse lines up zero after reaching a minimum (two-sided red arrow). The blue dotted arrow indicates the situation when the line reached a new impetus to the extremum, which means the state perekuplennosti (second vertical dashed line), then the trend line was broken earlier momentum trendline price (third vertical dashed line), giving warning of the spread trend. Turn trend confirmed at the intersection of impulse lines zero down.
Interpretation
Market, developing a strong trend of acting like a pendulum: the movement begins at a fast pace with strong momentum. This movement is gradually slowing down or losing its momentum, stops and changes direction.
Line pulse is always one step ahead of price movement. She is raising or lowering prices and aligned when the current trend remains in force. He then begins to move in the opposite direction as prices begin to flatten out.
10-day momentum line (for a daily schedule) varies on an open scale around the zero line. When the most recent closing price is higher than it was 10 days ago, a positive value indicates above the zero line. If the recent closure of less than 10 days ago, there has been negative.
In calculating the pulse is usually used for ten days or other periods, but also can be used any time. The shorter your time, it will be more sensitive indicator of short-term fluctuations in prices. When using a larger number of periods to calculate the indicator, its fluctuations will be more smooth and more resilient.
Ascending Pulse
When the upward momentum is beginning to smooth out the line, it means that the new increase, reached the last closing price the same as the previous 10 periods. The extent of the rising momentum of smooth, even though prices can still move. When the line begins to pulse and then decline below the zero line, upward trend in prices may still be valid, but the latest increase in the price of less than 10 periods ago. Ascending trend of losing its momentum.
Descending Pulse
When the momentum line moves below the line of zero, the last closure is now lower than the closing 10 days ago and it is possible to speak of the short descending trend. As the momentum continues to fall below the zero line, top-down trend is gaining momentum. Top-down trend is slowing, when the line momentum is beginning to unfold.
If the loss of momentum in the market occurs at the same time, when the price meets the level of support or resistance, the momentum and the price reached its peak at the same time.
Alerts
For the analysis of momentum apply basic principles of analysis of oscillators, which are designed to measure the degree of price changes rather than actual price levels.
Oscillator pulse served three conventional signal - the intersection of the zero line, a violation of trend lines and extreme values.
Intersection of the zero line
Although long-term price trend is still the center of attention, crossing above the zero line may be a signal to buy if the price trend is upward, and crossing below the zero line may be a signal to sell if the price trend is a top-down.
Using the trend lines
Trend line on the graph of momentum are violated before the trend line on the price chart. The value of the momentum indicator is that it develops earlier than the market itself, which makes it a leading indicator.
Extreme
One advantage of analyzing the oscillator is the ability to determine when markets are in extreme areas. Being on the extreme positive values, momentum implies condition perekuplennosti; at extreme negative values of - the state pereprodannosti.
The lack of fixed upper and lower boundaries represent a challenge to the impulse. To address this problem, look at the long-term story line momentum and are horizontal lines on its upper and lower extreme values. Occasionally it is necessary to revise these lines, especially after major changes of trend.
Description
. The line often enough momentum ahead of a price effect, signaling the potential spread trend in the market.
. The momentum indicator may warn about the relative strength or weakness of the price movement in advance before the turning point.
. At extreme positive values of momentum implies condition perekuplennosti; at extreme negative values of - the state pereprodannosti.
The first signal was given for the sale of impulse when crossing the line of zero-down (first vertical dashed line). The signal for buying emerged at the intersection of impulse lines up zero after reaching a minimum (two-sided red arrow). The blue dotted arrow indicates the situation when the line reached a new impetus to the extremum, which means the state perekuplennosti (second vertical dashed line), then the trend line was broken earlier momentum trendline price (third vertical dashed line), giving warning of the spread trend. Turn trend confirmed at the intersection of impulse lines zero down.Interpretation
Market, developing a strong trend of acting like a pendulum: the movement begins at a fast pace with strong momentum. This movement is gradually slowing down or losing its momentum, stops and changes direction.
Line pulse is always one step ahead of price movement. She is raising or lowering prices and aligned when the current trend remains in force. He then begins to move in the opposite direction as prices begin to flatten out.
10-day momentum line (for a daily schedule) varies on an open scale around the zero line. When the most recent closing price is higher than it was 10 days ago, a positive value indicates above the zero line. If the recent closure of less than 10 days ago, there has been negative.
In calculating the pulse is usually used for ten days or other periods, but also can be used any time. The shorter your time, it will be more sensitive indicator of short-term fluctuations in prices. When using a larger number of periods to calculate the indicator, its fluctuations will be more smooth and more resilient.
Ascending Pulse
When the upward momentum is beginning to smooth out the line, it means that the new increase, reached the last closing price the same as the previous 10 periods. The extent of the rising momentum of smooth, even though prices can still move. When the line begins to pulse and then decline below the zero line, upward trend in prices may still be valid, but the latest increase in the price of less than 10 periods ago. Ascending trend of losing its momentum.
Descending Pulse
When the momentum line moves below the line of zero, the last closure is now lower than the closing 10 days ago and it is possible to speak of the short descending trend. As the momentum continues to fall below the zero line, top-down trend is gaining momentum. Top-down trend is slowing, when the line momentum is beginning to unfold.
If the loss of momentum in the market occurs at the same time, when the price meets the level of support or resistance, the momentum and the price reached its peak at the same time.
Alerts
For the analysis of momentum apply basic principles of analysis of oscillators, which are designed to measure the degree of price changes rather than actual price levels.
Oscillator pulse served three conventional signal - the intersection of the zero line, a violation of trend lines and extreme values.
Intersection of the zero line
Although long-term price trend is still the center of attention, crossing above the zero line may be a signal to buy if the price trend is upward, and crossing below the zero line may be a signal to sell if the price trend is a top-down.
Using the trend lines
Trend line on the graph of momentum are violated before the trend line on the price chart. The value of the momentum indicator is that it develops earlier than the market itself, which makes it a leading indicator.
Extreme
One advantage of analyzing the oscillator is the ability to determine when markets are in extreme areas. Being on the extreme positive values, momentum implies condition perekuplennosti; at extreme negative values of - the state pereprodannosti.
The lack of fixed upper and lower boundaries represent a challenge to the impulse. To address this problem, look at the long-term story line momentum and are horizontal lines on its upper and lower extreme values. Occasionally it is necessary to revise these lines, especially after major changes of trend.
Forex Magazine
based on www.chartfilter.com
based on www.chartfilter.com
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