Does anyone have or can we create an indicator that draws trendlines on the standard Momenteum indicator, like what they do on the MACD to show divergence with Price action? I have started to trade this idea manually, but I wanted to semi-automate this so can get an alert as well mom getting within certain distance to the trendline drawn, and maybe even build an EA around this idea, depending upon how it does.
This idea is explained here: and pasted below:
Read more: http://www.babypips.com/school/momen...#ixzz2M0hdVPFY
"Draw trend lines on the momentum indicators themselves
This might sound a little ridiculous since you would normally draw trend lines only on price action. But this is a nifty lil' trick that we wanna share with you. After all, it doesn't hurt to have another weapon in the holster right? You never know when you might use it!
This trick can be particularly useful especially when looking for reversals or breaks from a trend. When you see that price is respecting a trend line, try drawing a similar trend line on your indicator.
You may notice that the indicator will also respect the trend line. If you see both price action and the momentum indicator break their respective trend lines, it could signal a shift in power from buyers to sellers (or vice versa) and that the trend could be changing. Oh yeah! Break it down like a Michael Jackson video!"
I would appreciate any help!
-Stearno
This idea is explained here: and pasted below:
Read more: http://www.babypips.com/school/momen...#ixzz2M0hdVPFY
"Draw trend lines on the momentum indicators themselves
This might sound a little ridiculous since you would normally draw trend lines only on price action. But this is a nifty lil' trick that we wanna share with you. After all, it doesn't hurt to have another weapon in the holster right? You never know when you might use it!
This trick can be particularly useful especially when looking for reversals or breaks from a trend. When you see that price is respecting a trend line, try drawing a similar trend line on your indicator.
You may notice that the indicator will also respect the trend line. If you see both price action and the momentum indicator break their respective trend lines, it could signal a shift in power from buyers to sellers (or vice versa) and that the trend could be changing. Oh yeah! Break it down like a Michael Jackson video!"
I would appreciate any help!
-Stearno