CHAPTER 9 Intro to Momentum, Including Momentum in Trading

Section 9 addresses momentum indicators, including the popular Stochastic and RSI. Momentum indicators can be used for entries, employing crossovers, exits using overbought/oversold signals and momentum divergence, and for filtering other indicators' signals for significance. These techniques are addressed in Section 9. (See Section 12 for oscillators, including the MACD, the Ultimate Oscillator, and Kase's momentum indicators: the Kase PeakOscillator and KaseCD.)

QUESTION 9.1   O US Daily with Momentum Indicator

  1. Can you identify this indicator?
  2. Identify each line.
  3. Draw in at least one instance of bullish divergence or bullish mini-divergence.
  4. Identify an instance of a drop or rise out of OBOS.

QUESTION 9.2   R US Daily with RSI exponential with simple MA (14, 3) and (50, 8)

  1. Identify at least one instance where RSI (14, 3) performed better than RSI (50, 8).
  2. Identify at least one instance where RSI (50, 8) performed better than RSI (14, 3).
  3. Draw in bearish divergences on both indicators.
  4. Draw in bullish divergences on both indicators.
  5. Which RSI has a flat divergence?

QUESTION 9.3   Y US Daily with SMAs (5, 13) and Kase Permission Screen

A longer bar length filter, Kase Permission Screen, displays green giving ...

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