---

Trading Platform:	Rating:
Release Date: 10-22-2006	Last Update: n/a	Installs: 112

Just taking a look at this indicator and am trying to backtest it in Amibroker. Do you know of a version for Amibroker? Most of it is pretty straight forward; just not sure about the momentum portion and how it is handled.

thx,

Ed

No clue Freddie. Youre asking a Tradestation guy

Has anyone put this backtesting in TS? If not I'm willing to do and share the results with you all. I can convert it into a strategy and see if it's profitable or not. I'll be back on March 7th so I can get started then.

I need to get more examples on this indicator so I can have a clear understanding how this works. Any details (links, etc) would greatly help.

So I'll start with questions:

1) what is considered a dominant momentum? big green histogram? how big and how long is it? Does it have to more of these than red histogram?
2) What about divergence? For example, while prices are making new high, but a green histogram is smaller than the last green histogram peak. Any consideration in that?
3) The signals to trade only when the dots turn blue? Where do we exit? When it turns red?
4) What stops are used? Trailing stops, hard normal stops?
5) Target profits?
6) What timeframes are recommended? Tick or minute charts?
7) What instruments are recommended?

My initial impression is that from the interpretation and use, there seems to be alot of false signals or that signals fire off but prices stall or just goes the other direction. Prove me wrong.

Torero: my experience with this indicator its that you must be a breakout trader... if you are not a breakout trader this indicator its not recomendable... cheers Walter

To me its like the New Market Paradigm that Walt Downs put together. The bollinger contraction is essentially volatility declining which means that when a breakout occurs it is more likely to continue (volatility expansion/contraction being cyclic).

I believe the guys over at Trade The Markets use a 5 minute squeeze more often than the others. I personally do not use this indicator but I have seen the 5 minute squeeze give off nice signals before an actual breakdown or breakout.

It doesn't fly. At least not in putting in a system as instructed specifically by them. Too many false signals despite restricting it to trade only morning, only afternoons, or both. I even optimized the parameters to see if it has some hope of a consistent profitability. Nada. Not sure if I am going put more energy into it.

You have to use this with a trend line break and you might get the result your looking for to trade. What do you do when the BB or macd is Neutralizes that is a valid signal but how can you back test Neutralization in trade station you cant so you have to wait for a trendline break or s/r breaks. (flat lines) If you dont you could miss the trade! If you cant put all the component in to trade station it is not worth back testing.

BB in an uptend go's up then flat, goes up than flat, go's up than flat! You get the picture! How do you trade flat ........Trendline breaks! S/R Lines!