Momentum is created when a security makes a large move on higher-than-average volume. Momentum shows the rate of change in price movement over a period of time to help investors determine the strength of a trend.
This indicator will create a green spike once price advances 4% and is trading above the 50-day average trading volume. However, if the stock begins to breakdown (-4% or greater on above average volume), a red spike will be created.
These green and red spikes represent a change in momentum that occurs in the selected security.
This indictor should be used in 2 ways: 1: What are the charecteristics of this stock? Does it breakdown shortly after a momentum spike? or does the security trend in orderly manner after a momentum spike? 2: Investers should use this indicator to determine the strength of a momentum breakout in real time. Has the stock made a large move, but with no significant volume?
Customization: The Percentage move, and average daily volume can be changed as well as colors.
Alerts: If you wish to set an alert, this indicator allows you to create an alert when the selected stock meets your desired criteria.
Release Notes
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The recent addition to this momentum Indicator is the addition of the Trend Intensity 65 (TI65).
TI65 measure how Intense the trend is by signaling when the 7-period moving average is greater than 5% above the 65-period moving average. This information is important when determining not only if the stock is in an uptrend, but how INTENSE the trend is.
Using both the 4% breakout signal AND the TI65 together, traders will have a very clear picture of a stock making a strong momentum move. Traders can use this information to find low risk opportunities during the strong trend. Finally, when a stock is in an intense uptrend AND breaking out on high volume, traders will have an edge using this indicator.