Momentum measures the acceleration and deceleration of prices. It indicates if prices are increasing at an increasing rate or decreasing at a decreasing rate. The Momentum function can be applied to the price, or to any other data series.

Market Signals

As a market peaks, the Momentum indicator will climb sharply and then fall off — diverging from the continued upward or sideways movement of the price. Similarly, at a market bottom, Momentum will drop sharply and then begin to climb well ahead of prices. Both of these situations result in divergences between the indicator and prices.

Calculation

Chart Example

Implementation and Usage

To initialize Momentum indicator use one of the following constructors provided:

Momentum – sets default values: period = 14

Momentum(Int32) – sets values for period

Momentum(TimeSpan) – sets time period

Use

MomentumValue - property to get current value

Example

Copy

 1// Create new instance
 2Momentum momentum = new Momentum(28);
 3
 4// Number of stored values
 5momentum.HistoryCapacity = 2;
 6
 7// Add new data point
 8momentum.Add(Bars.Current.Open, Bars.Current.High, Bars.Current.Low, Bars.Current.Close, Bars.Current.Volume);
 9
10// Get indicator value
11double IndicatorValue = momentum.MomentumValue;
12// Get previous value
13if (momentum.HistoryCount == 2)
14{
15    double IndicatorPrevValue = momentum[1];
16}