Momentum Indicator (MOM)
Indicator that compares the current price of an asset with prices from previous periods to calculate the momentum.
Momentum Indicator (MOM) compares the current price of an asset with prices from previous periods to calculate the momentum.
Trading application
A horizontal line is drawn at the central point of the indicator. The MOM line being situated above the central line suggests an uptrend, while seeing MOM line move beneath the central line can identify a downtrend.
Divergences also reflect bullish or bearish conditions: we can consider it bearish if the asset’s price increases more than the MOM (e.g. reaching a new high while the indicator doesn’t), while it would be bullish to see the asset’s price decreasing more than the MOM does.
Calculation
Pn = Previous price (generally 14 periods ago)
Parameters
Input Parameters
Name
Type
Range of value
Description
period
int
<1, int.MaxValue>
Number of bars used in the calculation.
Output Parameters
Indicator ouptuts a single value.
Type
Range of value
double
(0, double.MaxValue)
Examples
// Prints the current 20 period MOM value using
// the daily bars close price value.
mom = indicators.Momentum(20).OnSeries(dailyBars.Close);
Log("The current MOM value is " + mom.Value.ToString());
// Prints the previous MOM value
mom = indicators.Momentum(20).Keep(2).OnSeries(dailyBars.Close);
Log("The previous MOM value is " + mom.Values[1].ToString());
Complete example
using Signals.DataSeries.Bars;
using Signals.Framework;
using Signals.Indicators.Momentum;
public class MyStrategy : SingleMarketStrategy
{
private Bars dailyBars;
private Momentum mom;
public override void Setup(DataMarketplace data, IndicatorsMarketplace indicators)
{
dailyBars = data.Bars(BarPeriodType.Day, 1).WithOffset(25);
mom = indicators.Momentum(20).Keep(2).OnSeries(dailyBars.Close);
}
public override void RegisterActions()
{
OnUpdateOf(dailyBars).Do(() =>
{
// Prints the current MOM value
Log("The current MOM value is " + mom.Value.ToString());
// Prints the previous MOM value
Log("The previous MOM value is " + mom.Values[1].ToString());
});
}
}
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