iAnchMom

iAnchMom (Anchored Momemtum) is a VertexFx indicator determines market trends and turning points.

The idea behind iAnchmomis with its two components – a shorter term exponential moving average and a longer term simple moving average, is that when the market direction changes the short term moving average responds faster than the long term moving average.

To explain it more; iAnchMom indicator value is calculated by dividing shorter term EMA by longer term SMA. This value is first multiplied by 100 and then subtracted from 100 to derive the iAnchMom indicator value. When the market rises, the value of the EMA is greater than SMA value and hence the value of iAnchMom is rising gradually. When the market reaches its peak, the value of EMA remains steady but the longer term SMA is gradually rising, and hence the value of iAnchMom peaks out and gradually starts to fall.This indicates a market top.

Similarly, when the market is falling, the value of the EMA is lower than the SMA value and since the value of iAnchMom is falling gradually. When the market reaches its bottom, the value of EMA remains steady but the longer term SMA is gradually failing, and hence the value of iAnchMom bottoms out and gradually starts to rise. This indicates a market bottom. iAnchMom is a powerful tool to detect market tops and bottoms.

BUY – Place Buy when the indicator value reaches negative extreme and is rising gradually.
SELL – Place Sell when the indicator value reaches positive extreme and is falling gradually.

Usage

• Download the attachment.
• Copy it to your company VertexFX  Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Scripts
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.