Absolute Momentum Indicator

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Covered intensevely by Gary Antonnacci in his paper " Absolute Momentum : A simple Rule Based Strategy and Universal Trend Following Overlay , Absolute momentum buys asset with excess return, which is calculated by taking the return of the asset for a giving period of time LESS the Treasury bill rate . The following indicator is based on the rules found in the paper. However you have the liberty to choose your time frame and symbol to calculate the excess return .

Read more about this indicator here

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study("Absolute Momentum")

p = input(12,minval=1,title = "LookBack Period")
sym = input(title="Symbol", type=symbol, defval="SHY")
sm = input(1,minval=1,title = "Smooth Period")

rc = roc(close,p)

bil = security(sym,"M",close)
bilr = roc(bil,p)

rcdm = rc-bilr
srcdm = sma(rcdm,sm)

line = 0 

plot(rcdm,color= red,title= "Absolute Momentum" )
plot(srcdm,color = blue,title="Smooth Abs Momentum")
plot(line , color = gray,title="Zero Line")

barcolor(rcdm > 0 ? lime:red)
Hi, How do you add this indicator too the charts so that the bars change colour as per above?
Click the share button, located on the left corner of the chart , below the thumb up. This will open a separate window for you
AtifQ Algokid
Great, thank you. I wasn't aware of the options within the share button. Do you use this for long term trend trading?
Personally, yes . I use it on a monthly chart with different ETFs, and check at the end of month to see which asset still have positive momentum. But since we TradingView has a large community of traders and investors with different way to trade, I didn't want to limit the indicator to monthly only.

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