Weighted Moving Average System

a:=C/Mov(C,10,S)-1;
b:=C/Mov(C,20,S)-1;
d:=C/Mov(C,50,S)-1;
f:=C/Mov(C,100,S)-1;
(1*a)+(3*b)+(2*d)-(3*f)

Variables 'a' thru 'f' are percentage increases or decreases of the close over the various moving averages.  Adding the weighted % values, a specific chart patern can be found.  In this example, stocks trading below their 100 day moving average are given high values.  Notice the 3x wighting and the sign in from of 'f' in the formula.  If the current close is 20% below the 100 day moving average (-20%), then -3 times 'f' is +60%.  To this figure are added the other weighted moving averages, which give high values for closes above the shorter period moving averages.  In total, the value of this indicator will be high when the stock is trading well below its medium term highs, but has found a bottom, and is turning up.

By changing the moving average periods, and weightings, different patterns can be found. This is somewhat like the MACD, but with longer spreads between the averages.

This can be developed as an indicator, but is most useful when used in a exploration/scan.  Here are screen shots from Metastock:

Label Column A as "momentum" and type in the code from above:



The exploration is best used with a filter.  This filter ensures only stocks with short term up trends are selected, and volume is sufficient for trading:



Once the exploration is run, look at the results.  To sort by momentum, double click the column heading.  Open the top few charts to further examine for potential candidates:




Here is one of the results: