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MOM

Type: mom • Category: indicators

Description​

Momentum

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
pricestringPrice field to use to calculate MOMno
timeperiodnumberNumber of periods to use for MOM calculationno10

Help​

MOM

Momentum Indicator​

Description​

The Momentum (MOM) indicator is a technical analysis tool used in finance to measure the rate of change of an asset's price over a given period of time. It helps traders and analysts identify the speed and strength of price movements, providing insights into potential trends and reversals.

What does this worker do?​

The MOM worker calculates the momentum of a given price data over a specified time period. It takes the following parameters:

  • dataExp: prices data
  • price: Price field to use to calculate MOM
  • timeperiod: Number of periods to use for MOM calculation

The worker returns the momentum values for the given price data, which can be used to analyze and visualize the rate of change of the asset's price.

How to interpret the results​

The MOM indicator can be interpreted in the following ways:

  • A rising MOM indicates an increasing rate of change in the price, which can be a sign of an uptrend.
  • A falling MOM indicates a decreasing rate of change in the price, which can be a sign of a downtrend.
  • A MOM that is above zero indicates that the price is increasing, while a MOM below zero indicates that the price is decreasing.
  • A MOM that crosses above or below zero can be a sign of a potential trend reversal.

Additional Information​

The Momentum indicator was first introduced by Robert C. Wilder Jr. in his book "New Concepts in Technical Trading Systems" in 1978. It is often used in combination with other technical indicators to confirm trading signals.

How to use it​

For a step-by-step guide on how to use the MOM indicator, please refer to the following GIFs:

Full GIF​

[![Full GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short GIF​

[![Short GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)

By following these steps and interpreting the results, you can effectively use the MOM indicator to make informed trading decisions.