Momentum
MOM
The raw rate of price change over N bars; rising above zero is bullish thrust, falling below it bearish.
How to read it
Momentum measures how much price has changed over a set number of bars, oscillating around a zero line. Above zero, price is higher than N bars ago (up-momentum); below zero, lower. The distance from zero shows how forceful the move is.
Trading signals
A zero-line cross flags a momentum shift: crossing up is a bullish cue, down bearish. The signal line adds a faster trigger — momentum crossing its signal, like MACD. Momentum often turns before price, so it can give early warning of a stall.
Parameters
Momentum Length is the lookback the change is measured over; Momentum Signal Length smooths a signal line across it. Shorter lengths are more responsive but noisier.
- Momentum Length
- Bars over which price change is measured.
- Momentum Signal Length
- Bars in the momentum signal line.