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172: The Magic of Momentum Trading – Alan Clement
Better System Trader
How to Normalize a Trend Indicator
There's some particular indicators that meet your objective for a good trend indicator better than others do. So I mentioned rate of change already. That's exactly what we want. We want to determine how much our markets moved of its moved a lot. Then in a given period of time, then that tells us that this is a strong trend. But because of that noisy nature, you want to smooth it.
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