太虚一毫 wrote: ↑
Sun May 16, 2021 5:16 pm
Hello, teacher, Dynamic zones polychromatic momentum bars 1.02 and Dynamic zones Polychromatic momentum 5.13 are two indicators. If Velocity is used to replace momentum, what effect will be displayed? Would it be better?
You are assuming that the "momentum" is the only part that counts in the Polychromatic momentum name.
Actually it is not so. According to Dennis Meyers (who have invented it) it is the following :
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.
Hence, since the Polychromatic momentum is not "just" momentum, it can not simply be replaced by velocity