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
