The Momentum indicator is calculated as a ratio of current price to the price from several n periods ago.
As a market peaks, the Momentum indicator climbs sharply and then falls off diverging from the continued upward or sideways movement of the price. Similarly, at a market bottom, Momentum drops sharply and then begins to climb well ahead of prices. Both of these situations result in divergences between the indicator and prices.
In this version, since the indicator components have two levels, it shows the advancing sentiment of momentum within a number of Levels periods.
- Type: Free
- Language: C#
- Trading Platform: cTrader Automate
- Filename: mMomentumAverage.algo
- Rating: 5
- Installs: 192