Hello, I am looking to code "momentum filter" to filter out any signals preceded by sideways movement. I want to see a price action before the signal with the substantial movement up or down. Has anyone done anything similar? Could you share any ideas on how to implement this kind of filter? I was thinking about using, SAR indicator and measuring number of bars between SAR and $ cross (top to bottom of SAR leg) and multiplying by the % Zig change for the last High to Low. Is this idea any good? I am looking basically for the way to filter out sideways price action even if I have to forego breakouts signals from sideways consolidation.
Regards Richard
