Metrics Summary

Momentum

1 min read

Summary

Momentum compares the current price with a price from an earlier period to describe the direction and size of recent movement.

Parameter

Period controls how far back the comparison looks. The default is 10. A shorter period focuses on recent movement; a longer period provides a wider comparison but can respond more slowly to new changes.

How to read it

Use the selected period, the momentum line, and the price chart together. Rising or falling momentum describes recent change, not a guaranteed continuation.

Things to keep in mind

Momentum depends on the lookback period and can change quickly when older observations leave the calculation.

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