Technical Indicators – Momentum

technical indicators
Technical indicators

Momentum measures the rate of change of the closing price and it can be used to indicate the direction of the trend or to obtain early signals of turning the current movement. It can be calculated by the following formula:

Momentum = (t) – Price (tn), or

Momentum = (Price (t) / Price (tn)) * 100, where

Price (t) – the price at the current time

Price (tn) – the price before the „n” period

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