Momentum (MOM)

Description

Momentum is one of the most popular indicators available, the first choice of many traders. This relatively simple indicator is so popular because it measures the attenuation of the motion without the need for complex formulas. The momentum indicator represents a whole family of indicators that measure a movement’s strength. Other representatives in this case are the RSI or CCI, and so on. In the illustration below, the indicator is a graph that oscillates around a zero point. There is no fixed scale in percentage terms, and the value can be quite far removed from the zero point; this usually happens when the price makes an exceptionally strong leap, which is why the indicator predominantly shows the direction in which the current prices are moving towards.

Interpretation

Entry signals are generated when the indicator crosses the zero line.

See ROC.

Further information

http://de.wikipedia.org/wiki/Momentum_%28Chartanalyse%29

Usage

Momentum(int period)
Momentum (IDataSeries inSeries, int period)
Momentum (int period)[int barsAgo]
Momentum (IDataSeries inSeries, int period)[int barsAgo]

Return value

double

When using this method with an index (e.g. Momentum(14)[int barsAgo] ), the value of the indicator will be issued for the referenced bar.

Parameters

inSeries Input data series for the indicator

period Number of bars included in the calculations

Visualization

Momentum (MOM)

Example

//Output of the values for the momentum indicator.
Print("The current value for the momentum is " + Momentum(14)[0]);