The Momentum function is a trend-following indicator that measures the speed of price movements by comparing the current stock price against its value from a specified number of time periods in the past. A stock price has upward momentum when the indicator value is positive, and downward momentum when the indicator value is negative. Applications of Momentum include indication of possible trend reversals.
The Momentum function requires the following input series:
- d0 - The set of data values for which the Momentum is calculated, usually the daily close price of a stock.
The Momentum function has the following parameter:
- s0 - Period - The number of time periods to use in the calculation. Default value is 5.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
The Momentum function generates the following outputs:
- Momentum - The Momentum resultset.