[isatrader]

Your momentum index (2nd pane down) looks a lot different to the one in the book:



Is it possible to replicate Stan's closely by zeroing the 52 week MA?

Stan mentions passing from positive to negative territory etc as how the momentum index signals a bearish move - How is this signal given on your version?

Thanks

It's identical to the one in the book, I just show a much shorter time frame on the weekly updates and so the zero line is off the bottom of the chart, as the one in the book shows seven years of data, whereas the one in my chart is only just over one year of data.

So to create it you need to use the 200 day moving average of the daily advances minus the declines in the NYSE.

Attached is the same chart expanded out to seven years where you can see the zero line cross that last happened in mid 2009. It's a very long term indicator and so rarely crosses the zero line