CEDCR - Momentum indicator signaling reversal and strength
CEDCR is a pair of lines (Top and Bottom) that signal strength and direction of upcoming moves. The lines tend to converge and diverge around a midpoint line of 0.31-0.33 (the midpoint line is slightly different depending on the asset class). CEDCR is a combination of existing technical indicators with a dash of proprietary math. The default length is '14' but can be adjusted. CEDCR can be used in all timeframes.
Key Levels:
Midpoint : 0.31-0.33, most asset classes have the lines converging and diverging around the midpoint line.
How to use it to spot upcoming trends:
- Lines converging: Upcoming reversal of current trend.
- Lines diverging: Strengthening of current trend.
- Bottom(purple) line crossing over Top(green) line is bearish.
- Top (green) line crossing over Bottom(purple) is bullish.
Buy signal is the green band when divergence between Top and Bottom > 0.05 on Top line crosses over Bottom line.
Sell signal is the red band when divergence between Top and Bottom has weakened below 0.5.
Key Levels:
Midpoint : 0.31-0.33, most asset classes have the lines converging and diverging around the midpoint line.
How to use it to spot upcoming trends:
- Lines converging: Upcoming reversal of current trend.
- Lines diverging: Strengthening of current trend.
- Bottom(purple) line crossing over Top(green) line is bearish.
- Top (green) line crossing over Bottom(purple) is bullish.
Buy signal is the green band when divergence between Top and Bottom > 0.05 on Top line crosses over Bottom line.
Sell signal is the red band when divergence between Top and Bottom has weakened below 0.5.