Description
The Momentum study measures the velocity of price changes over a fixed time period. By default, the momentum is calculated as the difference between the latest close price and the close price 12 bars prior to it. Both the price type and the offset period are customizable.
The momentum indicator is often analyzed based on its crossovers with the zero level. Crossing above the zero line and further rising may signify uptrend acceleration while reversal to zero could mean that the trend is decelerating. Conversely, momentum values falling below zero might be regarded as a sign of downtrend emergence, with downtrend getting stronger as indicator values continue to drop. Consider setting the show breakout signals parameter values to yes so that all crossovers of the plot and the zero line are automatically indicated.
Input Parameters
| Parameter | Description |
|---|---|
length
|
The number of bars to go back to find the past price. |
price
|
The price to be used in calculations. |
show breakout signals
|
Controls indication of momentum crossovers above and below the zero level. |
Plots
| Plot | Description |
|---|---|
Momentum
|
The Momentum indicator. |
ZeroLine
|
Zero level. |
UpSignal
|
If enabled, displays an up arrow every time the momentum crosses above the zero level. |
DownSignal
|
If enabled, displays a down arrow every time the momentum crosses below the zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.