Two For The Price Of One by David Solomon
Here’s how you can enhance a momentum indicator to show momentum and congestion.
Momentum indicators are probably the most favored in technical analysis. In this article, I’ll show a simple way to emphasize trends and identify congestion in the same plot on a chart.
I begin with any standard momentum indicator—a line drawn on the chart showing an average of some kind (such as simple moving average, exponential moving average, double, Hull, etc.). The moving average convergence/divergence (MACD) is probably one of the more widely used indicators ...