Discover and read the best of Twitter Threads about #rtm

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I am building up on the concept of #RTM shared by @heartwon in this post -

#RTM = Short-Term Mvng Avg (5DEMA) / Longer-Term Mvng Avg (20 DEMA)

He adds another #RTM: 4 Week EMA / 12 Week EMA on the #charts to get a holistic view
So the two #RTM's work like a MACD except that an #MACD plots the absolute difference between 2 mvng avgs. But since we are dividing one avg with another in #RTM we can use it to compare one stock with another which we cant do in a MACD.
I have applied the concept of RTM on F&O stocks and come up with some insights. If the daily #RTM value is above the Weekly #RTM value then I define the trend as bullish. Then I calculate the difference between Daily and weekly #RTM's across F&O stocks. Image
Read 6 tweets
On this auspicious day of #GuruPoornima2020
Would like to present a simple yet effective way of understanding and following the TREND of the instrument/stock.
Q: Why I came up with the concept?
A: I wanted to remove noise, keep my chart simple where just a glance, tells the story
#RTM Ratio of Trending Move
The heart of this concept has just 2 moving averages and their smart, effective use.
Daily Time Frame: I am using 5 EMA and 21 EMA.
Q: Why 5 and 21?
A: There are 5 trading days in a week and approx 21 in a month. Moreover, both are Fibonacci numbers.
5 period EMA denotes an extreme short trend and 21 periods EMA gives an idea of what's going on a lightly longer term as compared to 5 the period. As mentioned before, its like a week and month's view. The next step is to compare and see how they fare to each other.
Read 8 tweets

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