MOM

Momentum

MOM measures the amount that a security's price has changed over a given time span.

INTERPRETATION:

  • Buy when MOM bottoms and turns up and sell when it peaks and turns down.
    Caution: If MOM reaches extremely high or low value, relative to its historical values, then it may indicate continuation of current trend.
  • If there is divergence in trend of price and MOM then a reversal of current trend in price can be anticipated.

Related Indicators: ROC, ROCP, ROCR, ROCR100.

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