In this post, we’ll go through a Price Momentum Oscillator (PMO) Amibroker AFL Code. The AFL code can be downloaded free of cost and imported into Amibroker.
Price Momentum Oscillator (PMO) Overview
The Price Momentum Oscillator (PMO) is a technical indicator used to measure the momentum of price movements in a financial instrument. It is based on the percentage change in closing prices over a given period of time, and it uses a double exponential moving average to smooth the data and provide a more accurate signal. The PMO is commonly used in technical analysis to identify trends and potential buy or sell signals. It is a popular tool among traders and investors who use technical analysis to make decisions in the financial markets.
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Price Momentum Oscillator (PMO) Amibroker AFL Download
Please download the AFL code from this link. It can be readily imported into Amibroker.
Price Momentum Oscillator (PMO) Amibroker AFL Screenshot
Check out the screenshot of this AFL below
AFL Explanation
The above code is an implementation of the Price Momentum Oscillator (PMO) in Amibroker’s Formula Language (AFL). The code consists of two main parts: the calculation of the PMO and the plotting of the PMO on the chart.
First, the code defines the period for the moving average calculation as 35. This period can be adjusted depending on the user’s preference or the particular instrument being analyzed.
Next, the percentage change in closing prices is calculated using the rate of change (ROC) function. The result is then multiplied by 100 to convert it to a percentage.
The PMO is then calculated using a double exponential moving average. The first exponential moving average (EMA) is calculated on a 10-period basis, and the second is calculated on a 20-period basis. Both EMAs are then smoothed using another 35-period EMA to provide a more accurate signal.
Finally, the calculated PMO is plotted on the chart with the label “PMO” and the color blue. This provides a visual representation of the PMO, allowing users to easily identify trends and potential buy or sell signals.
Overall, the PMO is a useful technical indicator for identifying trends and potential buy or sell signals in the financial markets.
Also Read: How to do External API Calls from Amibroker AFL?
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