mladen wrote: Mon Jan 29, 2018 5:58 am

mntiwana

No. The coloring has nothing to do with the name of the polychromatic momentum indicator. The fact that I made it using gradient colors is just coincidence - it is not the cause of the name of the indicator

mrtools wrote: Mon Jan 29, 2018 4:41 am This is a qqe using polychromatic momentum in it's calculations.

Dennis Meyers :

Momentum is defined as the difference, or percent change, between the current bar and a bar some lookback period in the past.. The major problem with using momentum based indicators is that the optimum lookback period seems to change over time creating losses with the current chosen lookback period. To avoid the errors due to a single lookback period we create an indicator that takes an weighted average of all significant lookback periods for the tradable. We named this indicator polychromatic because poly means many and chromatic means colors. Thus, polychromatic momentum for this indicator translates into the sum of many momentums.

The momentum magnitudes from different lookback periods are not equalized. That is, the momentum from 17 bars ago will have a range of magnitudes that are much greater than the range of momentum magnitudes of the one bar momentum. For Brownian motion random processes the expected distance a particle can move is proportional to the square root of time. Thus to equalize the effect of differences in magnitude so that the longer bar momentum magnitudes don't swamp the magnitudes of the shorter bar momentums in an average , we will weight the momentum values. The weighting function that we chose here is n α , where α is a system input variable. This weighting will equalize the various momentum magnitudes

shaileshm wrote: Mon Jan 29, 2018 4:13 pm I found the rainbow stochastic finally. Here is how it can be traded for binary options. Using additional support resistance + a minimum amount of PA knowledge virtually eliminates all losses.