Momentum indicator


Can someone guide me to some info on the use of this wild looking thing, I understand it can help determine the change in the slop of a MA.

Sergey Golubev
Sergey Golubev  

- Divergence Indicator: original thread with explanation, indicators and so on;

- Divergence & Convergence: original thread;

- Digital Twin Momentum indicator is here;

- FTLM and STLM (Fast Trend Line Momentum indicator and Slow Trend Line Momentum indicator) is here;

Stochastic Momentum Indicator (Index):

- original thread:

- fixed indicator:

See this post also for more MTF ema_momentum_cci indicators.

- RSI & Momentum Color+Alarm:

- Chande Momentum Oscillator: the version #1 from Igorad.

- RSI & Momentum Color+Alarm: original thread.



The Momentum indicator measures the amount that

a security's price has changed over a given time span.


The interpretation of the Momentum indicator is identical

to the interpretation of the Price ROC. Both indicators display

the rate-of-change of a security's price. However,

the Price ROC indicator displays the rate-of-change as

a percentage whereas the Momentum indicator displays

the rate-of-change as a ratio.

There are basically two ways to use the Momentum indicator:

You can use the Momentum indicator as a trend-following

oscillator similar to the MACD (this is the method I prefer).

Buy when the indicator bottoms and turns up and sell when

the indicator peaks and turns down. You may want to plot

a short-term (e.g., 9-period) moving average of the indicator

to determine when it is bottoming or peaking.

If the Momentum indicator reaches extremely high or

low values (relative to its historical values), you should

assume a continuation of the current trend. For example,

if the Momentum indicator reaches extremely high values

and then turns down, you should assume prices will probably

go still higher. In either case, only trade after prices confirm

the signal generated by the indicator (e.g., if prices peak

and turn down, wait for prices to begin to fall before selling).

You can also use the Momentum indicator as a leading indicator.

This method assumes that market tops are typically identified

by a rapid price increase (when everyone expects prices to go higher)

and that market bottoms typically end with rapid price declines

(when everyone wants to get out). This is often the case,

but it is also a broad generalization.

As a market peaks, the Momentum indicator will climb sharply

and then fall off-- diverging from the continued upward or

sideways movement of the price. Similarly, at a market bottom,

Momentum will drop sharply and then begin to climb well ahead

of prices. Both of these situations result in divergences between

the indicator and prices.

Thanks Newdigital I went thru this material and will go over it a few more times this week end.

Mladen Rakic

Anchored momentum indicator

Anchored momentum indicator

Originally developed by Rudy Stefenel

Technical analysis of Stocks and Commodities (TASC)

february 1998 - article : "Anchored momentum"

Of parameters :

MomentumType :

0 - General (picture 1)

1 - Most (picture 2)

2 - General with EMA (picture 3)

3 - Most with EMA (picture 4)


thx mladen

awesome work as usual.




Thanks mladen,can u tell us about this 4 type,what the different

0 - General (picture 1)

1 - Most (picture 2)

2 - General with EMA (picture 3)

3 - Most with EMA (picture 4)
Mladen Rakic

Document from the creator of the original indicator

RapidShare: Easy Filehosting

10 pages, he does a rather good job explaining everything



Thanks mladen,can u tell us about this 4 type,what the different

thank you Mladen

pdf doc went w/o any problem - thx again


thanks mladen


some indicators show the same thing

i was wondering

about some indicators

like macd,stoch,rsi,cci,etc

what is the point using these on the same chart

all the above show the same thing ,momentum

would be better to use indicators which show diferent things ?

can anyone suggests indicators which show diferent values than momentum ?