Short Term Momentum Trading

Short Term Momentum Trading

This is designed for Short Term Momentum Trading, and if you are willing to put in the butt-time in your seat, you will enter winning trades up to 90% of the time; however, you must be willing to follow the rules and not get emotional. Please don’t ask me about profit targets or programming a fully functional EA; if I could do that, I’d be a millionaire and I wouldn’t be here looking for assistance. So, don’t ask; I don’t have the answers that you’re looking for. PS – Yes I realize that these rules are REALLY lagging – I just want to catch part of a trend. I’m not greedy.



  • 3 LWMA
  • 13 LWMA
  • Laguerre Filter – gamma 0.85 (determines momentum / trend)
  • ADX (with +DI and -DI)
  • CCI

Alert Rules (BUY):

  1. 3 LWMA crosses above 13 LWMA …and 1a) 3 LWMA was BELOW 13 LWMA 1 period before
  2. Candlestick opens ABOVE Laguerre Filter (gamma 0.85)
  3. +DI crosses ABOVE -DI
  4. +DI crosses ABOVE 20 Level
  5. CCI crosses ABOVE 100 Level

Alert Rules (SELL):

  1. 3 LWMA crosses below 13 LWMA
  2. 3 LWMA was ABOVE 13 LWMA 1 period before
  3. Candlestick opens BELOW Laguerre Filter (gamma 0.85)
  4. -DI crosses ABOVE +DI
  5. -DI crosses ABOVE 20 Level
  6. CCI crosses BELOW -100 Level

Obviously, not all rules are going to hit at the same time. Once all indicator rules line up, I’d like:

  1. a visual marker below entry candlestick on the screen (arrow, star, whatever..),
  2. a pop-up alert window displaying currency, time-frame, entry-level and time-stamp, and…
  3. email alert.

Signal 3 is wrong as the +DI hasn’t crossed the 20 thresholds. Signal 5 occurs 1 – 2 candlestick later than I marked. I probably could have found a better chart as an example.

My problem is twofold. One – it just doesn’t function correctly. It’s programmed as I requested, however, the results are way off from what my indicators are telling me visually. Two – The alert works with a BUY signal; however the alert does not work with a SELL signal.

I have two concerns that I’m hoping that you can address.

  1. I run this on a 5-minute chart. I’d like to make sure that it only gives one alert – not one each time a new candlestick opens.
  2. …however, if we are in a trending market, the LWMAs can cross with the trend several times. I WOULD like an alert each time all of the rules line up. If the LWMAs cross with the trend (signal 5) then the LWMAs are the only indicator that I care about. Ignore the remaining rules when going with the momentum.
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