OPEN-SOURCE SCRIPT
[blackcat] L2 Bull-Bear Momentum
Level 2
Background
Momentum effect is generally called "inertia effect". Momentum effect was proposed by Jegadeesh and Titman (1993), which refers to the tendency of the return rate of the stock to continue the original direction of movement, that is, the return rate of the stock with a higher return rate in the past period will still be higher than the return rate in the past low-yielding stocks.
Function
The Bullish and Bearish Momentum Technical Indicator is a strategy for buying and selling by analyzing the strength and weakness of recent price trends. Traders seek to take advantage of the rising or falling trend of stock prices. When this technical indicator indicates that the stock is entering a strong upward trend, the trader will buy the stock; Will choose to short the stock.
In short, momentum trading is trading with the trend. Momentum trading is based on the idea that if there is enough momentum behind the current price action, it will continue to move in the same direction. When an asset reaches a higher price, it usually attracts more investor attention, driving up the market price. The price rise continues until sellers start to enter the market consistently, and once sellers slowly outpace buyers, momentum weakens and the trend may reverse.
I have not marked special tags for this indicator usage. Users are expected to define according to their own understanding. On the whole, the basic usage is to start long positions when the first green column appears; when the first red column appears, close long positions or open short positions.
Remarks
Feedbacks are appreciated.
Background
Momentum effect is generally called "inertia effect". Momentum effect was proposed by Jegadeesh and Titman (1993), which refers to the tendency of the return rate of the stock to continue the original direction of movement, that is, the return rate of the stock with a higher return rate in the past period will still be higher than the return rate in the past low-yielding stocks.
Function
The Bullish and Bearish Momentum Technical Indicator is a strategy for buying and selling by analyzing the strength and weakness of recent price trends. Traders seek to take advantage of the rising or falling trend of stock prices. When this technical indicator indicates that the stock is entering a strong upward trend, the trader will buy the stock; Will choose to short the stock.
In short, momentum trading is trading with the trend. Momentum trading is based on the idea that if there is enough momentum behind the current price action, it will continue to move in the same direction. When an asset reaches a higher price, it usually attracts more investor attention, driving up the market price. The price rise continues until sellers start to enter the market consistently, and once sellers slowly outpace buyers, momentum weakens and the trend may reverse.
I have not marked special tags for this indicator usage. Users are expected to define according to their own understanding. On the whole, the basic usage is to start long positions when the first green column appears; when the first red column appears, close long positions or open short positions.
Remarks
Feedbacks are appreciated.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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