# The secret behind the X all comes down to a formula...

Can VV create the formula described below on a VV graph?

(from Money Morning ad) as this looks like something VV should offer their subscribers

The secret behind the X all comes down to a formula...

Here it is.

You take the number of periods for the stock, you subtract the number of periods since that stock hit its highest high – you then divide that by the number of periods again.

And finally, you multiply that answer by 100.

That's simply the adjustable window of time the formula uses to determine the strength of both momentum and gravity.

So to keep things simple, let's use 100 – meaning 100 days. We're looking to find the right time frame to base a specific trade on.

Now, I've highlighted part of this formula labeled "Number of Periods Since Highest High."

So what this represents is the number of days that have passed since this stock reached its 100-day high point for the green momentum line...

Now, for the red line, it's the same formula – you just are calculating the number of days since this same stock reached its 100-day lowest low point.

So after you crunch the numbers you take these scores and you create trend lines for both the green and red lines.

At two points these two lines will meet – meaning both forces are equal.

Then, at the first point, the green line will continue shooting straight up as the red line falls.

The first X will appear.

When they meet again – the red line will be the one rising, as the green line is falling.

Their paths will cross, creating the second X.

These two Xs generally signal a 48-hour window for when you should enter – and exit – a trade.

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