Anchored Momentum by Rudy Stefenel
ARTICLE SYNOPSIS ...Anchored Momentum by Rudy Stefenel
A centered simple moving average can be used as a reference point when creating technical analysis indicators. Even though a centered simple moving average produces a plot much smoother than its related price plot, the centered moving average technique is generally ignored because it stops short by half of its period. However, some unique and effective momentum indicators can be anchored to a point on a centered simple moving average. Here are the benefits of anchored momentum.
Two points on a security price plot can be used to calculate ordinary momentum....