Momentum
The Momentum indicator measures the magnitude of the price change of a financial instrument over a certain period. It indicates overbought and oversold moments when the curve reaches maximum or minimum values. Adding a smoothed moving average to the indicator improves the interpretation of trend changes.
To use the indicator, the Momentum class should be used.
Calculation
Momentum is defined as the ratio of today's price to the price n periods ago:
MOMENTUM = CLOSE(i) / CLOSE(i - n) * 100
where:
CLOSE(i) � the closing price of the current bar;
CLOSE(i - n) � the closing price of n bars back.
