One problem with momentum based indicators is that the optimum lookback period seems to change over time. Dr. Dennis Meyers' Polychromatic Momentum is one momentum indicator that deals with this by using a unique weighting concept that combines multiple look-back periods and provides a basis for a profitable short-term trading strategy.

Following the curve of Polychromatic Momentum, go long when the curve moves above the green Polychomatic Momentum buy (bxo) level and go short when the curve moves below the red Polychromatic Momentum sell (sxo) level.