Anchored Momentum
The technical indicator Anchored Momentum was developed by Rudy Stefenel and presented in 1998 in Technical analysis of Stocks and Commodities magazine.
Our team has over 7,000,000 traders!
Every day we work together to improve trading. We get high results and move forward.
Recognition by millions of traders all over the world is the best appreciation of our work! You made your choice and we will do everything it takes to meet your expectations!
We are a great team together!
InstaSpot. Proud to work for you!
Actor, UFC 6 tournament champion and a true hero!
The man who made himself. The man that goes our way.
The secret behind Taktarov's success is constant movement towards the goal.
Reveal all the sides of your talent!
Discover, try, fail - but never stop!
InstaSpot. Your success story starts here!
The technical indicator Anchored Momentum was developed by Rudy Stefenel and presented in 1998 in Technical analysis of Stocks and Commodities magazine.
Smoothed AM = 100*(EMA[Close,EmaPer] / SMA[Close,2*MomPer+1] -1), where
EmaPer = smoothing period ЕМА {SmoothPeriod}
MomPer = Momentum period {MomPeriod}
As many other oscillators, this indicator is mainly used to open buys when the line of the technical indicator Anchored Momentum crosses above the level 0. A reverse situation is suitable for sells; the sells should be opened if the price crosses below the level 0. The most optimal way to use this indicator is to look for the possibilities to enter the market using signals of the other systems and indicators.
Besides the situations when the Anchored Momentum indicator crosses the zero level, it is also important to monitor the situations when there are discrepancies between a price movement and an indicator movement. If the price is declining and Anchored Momentum is forming an uptrend below the level of 0, then a reverse of the price may be observed soon. When the price is rising and the indicator line is declining there is a high probability of further price fall in terms of divergence signal.
The founder of the indicator suggests using a particular buffer zone around the level 0 to reduce the number of false signals. Such a zone may be located in the range from -0.2 to 0.2 and, correspondingly, the signal will be the break of the line off the buffer zone, not the crossing of the zero line by the indicator line. This approach will reduce the number of deals and may affect positively the performance.
MomPeriod = 11
SmoothPeriod = 6
