Dear Pradeep, what do you use to establish that the stock is in a momentum phase? I have noticed that at the bottom of each chart, there is an indicator that shows green or red. How is that determined? Thank you for sharing your knowledge.
it is ratio of 7 days average price to 65 day average price. it is green when it is 5% plus.
Is there a reason why 7 and 65 were preferred?
65 days is one quarter. 7 days is approximately 10% of that. Studies show one quarter momentum persists for another quarter or so.
Ah! Thanks for the insight, Pradeep. Very valuable.
Hi Pradeep ,How to calculate that ratio?
moving average of 7 days/moving average 65 days> 5%
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