This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I just coded my new trading rules for short scalps into a set of paintbars, and looked at the charts for many of the names called out today on Wallstreak by StreetSmack. A gray arrow above the candle means that momentum is slowing, so get ready. A red arrow means that a new downtrend is in place, and it’s safe to scale in to the trade.
Look at this:
I need to tune them a bit still to weed out a few false positives and some missed entries due to technicalities in how I want them to appear, but I can’t wait for trading tomorrow!!!
This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
August 10th, 2007 at 5:58 am
Ya, ditto to your quote. I was up till the wee hours studying his charts as well. last night. I think I may give it a try soon.
August 10th, 2007 at 4:09 pm
Can you post the paintbar. I’ve been reading streetsmack’s post and I’ve never used the Momentum Osc before? Can you make a post with the paintbar and maybe the rules of this type of trade?
August 10th, 2007 at 5:03 pm
Sure. Like Richard, mine are in pre-release, but I’ll put a beta out soon. As far as the Momentum Oscillator, it’s one of the indicators in QuoteTracker, and I chose it because I liked the way it looks, so you now know as much about it as I do. The actual indicator isn’t that important, it’s a representation of a slowdown in momentum. StreetSmack uses a MACD to do the same thing.
Also, for those interested in learning StreetSmack’s strategy, I’ll be releasing a big write-up on it soon as well.
August 10th, 2007 at 5:12 pm
I look forward to your post. I’m fine with a beta pre release because I’d like a chance to tweak it myself.
It’s a interesting strategy. From what I gather the Momentum oscillator is two SMA’s from different time periods.
I’ll look more into it.
August 10th, 2007 at 5:32 pm
Okay then, here’s pre-release beta alpha version 0.00:
if Momentum Oscillator[1]>=Momentum Oscillator AND HMA>EMA set color to Gray
if Paintbar[1] = Gray AND Momentum Oscillator[1]>=Momentum Oscillator AND HMA<EMA set color to Maroon
August 10th, 2007 at 9:07 pm
fyi the momentum oscillator is essentially an SMA-based MACD presented as a histogram. Not to be confused with the histogram part of an actual MACD, which plots the difference between the MACD and a smoothed version of the same MACD.
So, you’re basically watching whether two SMAs are getting closer or farther apart.
August 11th, 2007 at 5:44 am
Thanks, now I don’t have to look it up! Also, it doesn’t sound like what I’m looking for…