Momentum Indicator

Dow Jones Industrial Average with 10-day Momentum indicator and Bollinger bands at 2.5 standard deviations around a 21-day exponential moving average.

1. Go long [L] when the MA turns upwards after a bullish Momentum divergence.
2. Take profits [P] on a bearish divergence.
3. Exit [X] when price closes below the MA.
4. Price has started ranging, shown by the fluctuation of price around the MA and Momentum around the zero line. Set overbought and oversold levels based on observation of previous ranging markets. Go short [S] when Momentum turns back below the overbought line.
5. Go long [L] when Momentum crosses back above the oversold line.
6. Go short [S] again when Momentum crosses back below the overbought line.
7. Go long [L].
8. Go short [S].
9. Go long [L] when Momentum crosses back above the oversold line. The long position is stopped out by a lower Low at [W].
10. Go long again at [W] - the signal is supported by a bullish divergence.
11. Go short [S].
12. Go long [L]. Price then breaks out of the ranging market and stays above the MA. Switch to trending signals.
13. Take profits [P] on a bearish divergence.
14. Take further profits [P] on a bearish triple divergence. Exit [X] the trade when price closes below the MA.

Sources: http://www.incrediblecharts.com/