Individual Momentum Indicators

The KST can be constructed for any time frame, from intraday to primary .

The KST is calculated from the smoothed ROC of four time spans , each of which is weighted according to the length of time.

Long-Term ,Short-term and intermediate KST’s can be combined on one chart to reflect the Market Cycle Model.

The KST lends itself to numerous momentum-interpretive techniques and can successfully be applied to relative strength analysis.

The +DI and _DI  means postive and negative short-term direction.

When the raw or smoothed Dis cross, they trigger buy and sell momentum signals.

The ADX measures the directional movment of a trend.

A rising ADX indicates an increase in directional movment and vice versa.

Qwhen the ADX reverses direction from a high reading, the prevailing trend is likely to change.

The parabolic is a stop-loss system.

The parabolic was orginallydesigned as a stop and reversal method.It is better used as an exit mechanism due to the large risk oftern associated with the initation of a position based on an initial parabolic stop.

Momentum

Momentum is a generic term embracing many different types of oscillators.

Momnentum measures the rate at which prices rise or fall and gives usful indication of latnet strength or weakness in a prce trend. This is because prices usually rise at their fastest pace well ahead of their peak .

Since markets generally spend m,ore time in a rising than a falling phase, the lead characteristic of mementum indicators is normally greater during rallies than during reactions.

Oscillators reflect market sentiment and have different charactersistsics in primary bull and bear markets.

There are two basic methods of interpreting momentum: momentum characteristics and momentun trend reversal

Momentum singlas should always be used in conjunction with a trend-reversal  signal by the actual price.

Trendlines-Part

Trendlines are perhaps the esiest technical tool to understand, but considerable experimentatin and practise are requied before the art of imterpreting them can be successfully mastered.

Trendline violations signal either a temporary interruption or a reversal in the prevailing trend. It is necessary to refer to other pieces of technical evidence to determine which is being signalted .

The significance of trendlines is a  function of their length, the number of times they have been touched or approached, and the steepness of the angle of ascent or descent.

A good trendline reflects the underlying trend and represents an imprortant support and resistance zone. Extended trendlines are an important concept and should not be overlloked.Exhaustionbreaks often possess good predicitive power.