Let's take some random input indicator, be it a MOMO or a OPTIONS or a Open Interest or a EXHaustion or a Money Flow MOMO Indicator and decide how we want to interpret a reading.
Below you find our approach:
We look at an Indicator and observe the following:
- Is it moving down (or up) = Trend <0 (>0)
- How close is the current reading to a recent medium term extreme (call it Overbought or Oversold) and calculate a weighting based on that observation from 0% to 100%
We include the following Indicators in our TREND Indicator and give 50% weight to the MOMO and FLOW indicators and 50% to the Options and Option Open Interest ones.
Indicators taken into account:
No comments:
Post a Comment