Murphy «Technical analysis of the futures markets». The first, and, according to modern traders, the most correct, has been published in the book by J. Several formulas of calculation are offered. The practical idea is applied that before each turn the market has to «slow down», therefore, at first the line of the indicator changes the direction and only after that the real turn on the price chart occurs.įrom the point of view of mathematics, calculation of Momentum is the result of the ratio of the market price (current) to the last price displaced on some number of bars back. Successfully copes with an oscillator role, gives the advancing signals of «slowdown» and a possible turn of the price movement. The Momentum indicator is the exchange trend tool for assessment of force of the market and the analysis of price dynamics on time. Trading STRATEGY ON THE BASIS OF MOMENTUM.Momentum indicator Application In Trade.
