WAMI Momentum Indicator: Smoothed Price Changes and Signal Line
Summary
WAMI is a momentum indicator described as a sequence of moving averages applied to price changes. It first calculates the difference between the current price and the previous price, then smooths that difference through three moving-average stages. A separate signal line is produced by smoothing the resulting WAMI series.
The description exposes configurable periods and calculation methods for each averaging stage, along with the applied price. This makes the construction adaptable to different smoothing choices, but the document does not specify default settings, interpretation rules, entry or exit signals, or tested results. It names a 1994 magazine article as the indicator’s source and provides a translated implementation reference. The material explains how the indicator is constructed, but offers no evidence that it predicts returns or performs well in any market or timeframe.
Key ideas
- WAMI begins with the change from the previous price to the current price.
- Three configurable moving-average stages smooth the price change into the indicator.
- A further moving average creates a signal line from WAMI.
- The description gives no trading rules or performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.