Momentum Indicator
Measures the absolute change in price over n periods; positive and growing values confirm trend strength, declining values warn of exhaustion.
Formula
Momentum = Close_t − Close_{t − n}The raw Momentum Indicator subtracts the close n periods ago from the current close. Unlike ROC, which expresses the change as a percentage, Momentum is an absolute difference. A value above zero means price is higher than n bars ago; a rising value means it is gaining ground faster than before.
Despite its simplicity, momentum divergence — when price makes a new high but Momentum does not — is one of the most reliable reversal warnings in technical analysis. The indicator feeds into more complex tools like the Coppock Curve and is conceptually the ancestor of MACD.
Related Terms
Awesome Oscillator
Bill Williams momentum oscillator measuring the difference between 5- and 34-period SMA of midpoints; histogram colour changes signal momentum shifts.
IntermediateCoppock Curve
Long-term momentum oscillator that sums a 14- and 11-month ROC then smooths with a 10-period WMA; designed to identify major bear market lows.
AdvancedDetrended Price Oscillator
Removes the long-term trend from price to expose shorter cycles; useful for timing cyclical highs and lows in range-bound conditions.
AdvancedMACD
Trend-following momentum indicator built from the difference between a 12- and 26-period EMA, with a 9-period signal line and histogram.
BeginnerRate of Change (ROC)
Percent change between the current close and the close n periods ago; positive values confirm upward momentum, negative values confirm selling pressure.
BeginnerRelative Strength Index (RSI)
Momentum oscillator (0–100) that flags overbought conditions above 70 and oversold below 30 over a default 14-period lookback.
Beginner