Short Term Trading Weekend Lounge: 6 -8th Apr, page-125

Hi Cabbie

Something for your interest perhaps.

Its been some years since I used charts for trades ... but one indicator I created for myself often gave very useful info. I would plot the 3 day exponential moving average on the open price and the weighted 4 day moving average on the closing price... the weighted moving average moves slightly faster than the exponential so it gave me what is very close to the current momentum on the price. When the weighted average is above the exponential line the momentum is positive. Crossovers provided quite good buy/sell signals which had very little lag.