Description
The PMO Strategy is based on the signals provided by the Price Momentum Oscillator. The Price Momentum oscillator is a study developed by Carl Swenlin and is essentially the one-bar rate of change (relative momentum) consequently smoothed by two exponential moving averages. The signal line is a third exponential moving average of the double-smoothed rate of change.
The strategy adds a simulated buy order when the main line crosses above the signal line. When the main line crosses below the signal line, a simulated sell order is added.
Input Parameters
| Parameter | Description |
|---|---|
price
|
The price to be used in the calculation of PMO. |
length1
|
The length of the first exponential moving average to smooth the rate of change with. |
length2
|
The length of the second exponential moving average to smooth the rate of change with. |
signal length
|
The length of the exponential moving average to be used as the signal line. |
Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, and there is no guarantee that the same strategy implemented today would produce similar results.
Technical analysis is not recommended as a sole means of investment research.
For educational purposes only. Not a recommendation of a specific security or investment strategy.