Another, but less common, trading rule used by chartists is the momentum line rule (Taylor and Allen, 1992).
According to this trading rule, a buy signal is generated when the current rate of change begins to increase relative to the rate of change n days ago. A sell signal is otherwise generated."
In its simplest form, n = 0, which means that a buy signal is generated when the current rate of change begins to increase.
Prof. Mikael Bask
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