I'm no trader, but recently I've been trying to pick entry points that I might use to buy in. I'm doing pretty good (in my head at least). All I think I'm really looking at is what might be thought of as "velocity" - the market is going down very fast. But then it slows down greatly. At these points it seems more often than not there is a pullback/new rush up. So my question - are there any technical indicators that are based on "velocity" or price move metrics? Thanks!
This, specifically, might interest you: https://www.investopedia.com/terms/p/pricerateofchange.asp And in general, looking at "divergences" between the peaks and troughs of "momentum indicators" and the high/low swings of the price might also help you. (Also, be aware that many websites/courses/books use the terms "velocity indicators" and "momentum indicators" more or less interchangeably.)
What are the particular price/market mechanics that you're observing? Can you come up with (pre-)conditions that spell a reverse of direction? What indicators utilize the mechanics of what you're seeing/describing? (Having found some candidates...) What indicators seem to mimic your choices of entry or exit? (And the biggie!) Can you tune those indicators to improve their percentage of profitable entry/exit points? Lots of screen-time ahead -- get you some Saltynuts A.S.A.P. (And a sweet B-Complex.)
I wouldn't put too much weight or a truly strong emphasis on trading indicators and other systems and formulas that primarily look at the past somewhat Blindly and Squarely. Try to have a more present and forward and future-looking trading viewpoint and ideology and methodology and horizon. Along with somewhat of a rational, logical, yet open-minded, calm reasoning behind your directional or semi-directional conviction case. Past/present/future...33.33%/33.33/33.33 considerations in a simple, ideal world. But that ratio can vary every waking moment in the market, or day, or chart. I hope that explanation clearly clears everything up for you -- and you become a millionaire in the market. It's 2018...Make Trading and Your Life Great Again...High-Five`
Since you started the post, good at programming? I made new indicator today based on your question, did have to add missing link but pretty decent. Thank you
I wish Handle123, no good with programming. But heck, is it something you can send to me? Would love to try it. Thanks for link Xela, will check it out!
%% I'm NOT a mind reader +Ela Young,LOL but that's what i was thinking.What?? Momentum =price speedometer + gets one out of a trend waaaay too early!![Delayed slow edit, saltyN, you are welcome] Murray t turtle