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Strategies & Market Trends : NeuroStock

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To: Jay Hartzok who wrote (470)12/5/1998 1:22:00 PM
From: Len Giammetta  Read Replies (1) of 805
 
Does our sort term filter sound like a cut down version of the momentum indicator as defined below?

Momentum Calculation

The momentum oscillator is calculated as the percentage difference between the current
(closing) stock price and the price 30 days ago. However, one additional factor affects this
calculation and smoothes the momentum curve: the stock moving average. The momentum
oscillator is recalculated from the stock's moving average, rather than its closing prices. This
smoothes the momentum curve to reduce whipsaws (i.e. as soon as a signal is given the stock
immediately reverses direction and gives the opposite signal). However, the longer the time span
of the moving average, the greater the delay in signals given by the momentum oscillator. The
best stock moving average is the one that produce the least whipsaws with the signal nearest the
bottom or top of the stock's price movement.

Just an observation... Len
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