Recruitment of participants Better Momentum Ninjatrader Indicator

Better Momentum Ninjatrader Indicator

Stop measuring price and start measuring demand and supply volume!

Momentum indicators have been calculated based on changes in price for decades. But that doesn’t make any sense – you’re just measuring the result, not the driving force. The driving force is demand and supply volume – the energy that drives prices. So why not use a momentum indicator based on buying and selling volume?



The chart above is a 500 tick bar chart of the Emini and shows the Better Momentum indicator (volume based) along side the traditional momentum indicator (price based) with the default TradeStation settings. As you can see for the highlighted turning point, the Better Momentum indicator correctly identified fewer sellers participating in the move and a likely reversal. The traditional momentum indicator totally missed that a turning point was being formed.

Not all turning points will be as clear cut as this one – often price based momentum mirrors volume based momentum. However, if you have the choice, why not measure the driving force of the market – volume – instead of settling for a proxy measurement – price.

What is the best momentum indicator?
Obviously I’m biased, but I think the best momentum indicator is the Better Momentum indicator. And here’s why:

• It’s based on buying and selling volume, not price
• It plots Exhaustion volume signals, where the market has reached a climax
• It plots Divergence patterns, where price and volume start to diverge
• It plots Flush patterns, where near extreme volume shows traders getting “flushed” out of the market