Momentum without an indicator, and the range before the launch

MACD splits the waves and measures divergence, but the strength of a wave, in our school, is measured from price itself, not from an indicator. And that measurement leads us to a pivotal concept in timing the entry: the range, or transition phase.

Measuring momentum geometrically

We measure a wave’s momentum with the Price Range tool of the charting platform in two dimensions: length (how many points it covered) and duration (how many candles it took). A wave that covers a large distance in a short time has strong momentum; one that covers less in a longer time has fading momentum. We compare successive waves by this measure: increasing momentum means continuation and then an equal or larger correction, and fading momentum means the end is near. And from the duration of the oscillating waves we detect the market maker’s hand: a long directionless oscillation after a strong wave means accumulation or distribution.