As promised, now the modified RS momentum indicator showing risk-reward ticks and probabilities, along with the signal indicator.
Once back-testing has been completed, I will show some descriptive statistics and estimated distributions layered on top of histograms.
This mode shows that the current momentum indicator is 26. My hypothesis is that an indicator above 50 indicates that the risk reward is skewed towards reward. Conversely, my hypothesis is then that an indicator below 50 – as now – depicts that risk reward is skewed towards loss.
Note that this is on a purely momentum basis. Macro and micro news in my experience, tends to disrupt momentum indicators.
