Description The Momentum indicator is a speed of movement indicator that is designed to identify the speed (or strength) of price movement. This indicator compares the current close price to the close price N bars ago and also displays a moving average of this difference.
Let's share your best setting, timeframe, and instrument.
twald1
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Hello Hampeh, great indicator, thanks for sharing. What N / N1 settings would you suggest setting using the indicator to reflect strength of momentum of movement on an hourly chart?
anupam08
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Hi, Using 30 min TF on chart and with 1 Day TF in the indicator. whatever it dispalys at the end of day is just amazing but in real market until ad unless it forms change in MTM line, it doesn't show anything. also realtime chart is different and it repaints after day end. Any solution plz?
p1d2f8
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The description was not very clear to begin with. So here's my interpretation:
N = Timeframe of n days for Indicator Line N1 = Timeframe of n days for Indicator MA Line
Therefor I'll try to use the same settings as for RSI/MFI. Which is often 14 or 21.
In the first formula, mtm is being calculated as the difference between the current closing price and the closing price N periods ago. This will give you the Momentum of the asset.
The second formula calculates the Moving Average of the Momentum over a period of N1. The Simple Moving Average (SMA) is a type of Moving Average that is calculated by taking the average of a given set of values over a specified number of periods. In this case, the SMA is being applied to the Momentum values calculated in the first formula to give you the Moving Average of the Momentum (MTMMA).
p1d2f8
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@Hampeh, Great. Thanks for the detailled explication.
I really like the indicator. I'm gonna test it a longer time to see its usefulness.
Thanks for sharing.
Hampeh
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@p1d2f8, maybe you can try setting N=6, N1=6 at lower timeframe if you are scalper.
LeandroStonks
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Does it repaint?
Hampeh
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@LeandroStonks, No, But same like EMA cross... there is noise at smaller timeframe...