Momentum indicator is one of the frequently used indicators in Technical Analysis. But it has one "issue": it is a very "nervous" indicator - the values it displays are far from being smooth, and that can cause a lot of false signals in a lot of cases - regardless of the calculation period that is used.
This indicator is one of the possible ways to solve that issue. The smoothing is not done by smoothing the momentum value, but the calculation itself is changed completely. Even with a completely changed calculation method, the values are, as it can be seen by comparing it to "regular" momentum, a real momentum indicator except that the values are much, much smoother and that makes the number of false signals insignificant compared to regular momentum.
PS: just a quick example and a comparison of the smoother momentum and the "regular" momentum:
As it can be observed, there is no lag compared to "regular" momentum of the same period quite the opposite: in some cases the smoother momentum is leading compared to regular momentum, and the values of the smoothed momentum are (as its name tells us) much, much smoother.
This indicator is a MetaTrader 5 version of nonlinear regression. Nonlinear regression is very "fast" when responding to sudden market changes so the default calculation period is set to somewhat longer period than it is usual for similar type indicator. Because of that some experimenting with period is advised based on your trading strategy and trading style.MACD High/Low
MACD High/Low uses the highest high and lowest low of MACD (nnn) bars back to calculate a sort of dynamically changed zero line, early levels up and down and trend confirmation levels up and down. By adding these non-fixed levels, the MACD becomes faster in response to market changes and the MACD trend assessment has less false signals.
"Sadukey" indicator is an indicator combining two digital filters on a chart to give us an assessment of current trend.Smoother Momentum Stops
In the Smoother Momentum Stops indicator the stops are calculated using the smoother momentum and the direction of the stops is determined based on the smoother momentum.