In this overview we would like to tell about the Anchored Momentum indicator which task is to show levels of overbuy and oversell of the price, also anchored momentum gives good signals of divergence. It is placed in the section Indicators - Divergence
at chart it looks as following:
Settings of the indicator:
MomPeriod – the period, the standard Momentum'a parameter;
SmoothPeriod – coefficient of smoothing of the line of the indicator, the more is parameter, the more smoothly it behaves;
Level – horizontal levels of the indicator.
It is possible to trade on this indicator like that:
1. To sell when indicator is at its max height and to sell when the line it is lowest, as shown at the pic below.
2. It is possible to look for divergence signals, as shown at the pic below:
For filtering of false entrances of this indicator it is possible to use Moving Average and enter the market only if their indications don't contradict each other. We wish you high profit.