The Momentum indicator could be a speed of movement (or rate of change) indicator, that’s designed to spot the speed (or strength) of a worth movement. Usually, the momentum indicator compares the foremost recent damage to a previous damage, however it can even be used on different indicators like moving averages. The momentum indicator is typically displayed as one line.
There square measure many variations of the momentum indicator, however whichever version is employed, the momentum (M) could be a comparison of the present damage (CP) and a particular length of the previous closing costs (CPn). The version shown within the example chart is that the second version shown on top of, wherever the momentum price is that the most up-to-date damage as a share of the previous damage.he momentum indicator identifies once the value is moving upwards or downwardly, and additionally by what quantity the value is moving upwards or downwardly.
Once the momentum indicator is on top of zero (zero), the value has upwards momentum, and once the momentum indicator is below zero (zero) the value has downwardly momentum. The momentum indicator will be used on its own, or as a part of a bigger commerce system.
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