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    Momentum (Technical Analysis) : For Other Uses of "Momentum", See

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    Ashish Tripathi
    Momentum and rate of change (ROC) are technical analysis indicators showing the difference between today's closing price and the close n days ago. Momentum is the absolute difference in stock prices, while ROC scales by the old close to represent the increase as a fraction. These indicators remain positive during an uptrend and negative during a downtrend. Crossing up through zero may signal a buy, while crossing down may signal a sell. The higher or lower the indicators, the stronger the trend. Momentum shows absolute changes in dollar terms, while ROC shows changes proportionally. Conventionally, momentum is used as a trend-following indicator, with descending momentum signaling a sell and ascending momentum signaling a buy.

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    Momentum (Technical Analysis) : For Other Uses of "Momentum", See

    Uploaded by

    Ashish Tripathi
    37 views2 pages
    Momentum and rate of change (ROC) are technical analysis indicators showing the difference between today's closing price and the close n days ago. Momentum is the absolute difference in stock prices, while ROC scales by the old close to represent the increase as a fraction. These indicators remain positive during an uptrend and negative during a downtrend. Crossing up through zero may signal a buy, while crossing down may signal a sell. The higher or lower the indicators, the stronger the trend. Momentum shows absolute changes in dollar terms, while ROC shows changes proportionally. Conventionally, momentum is used as a trend-following indicator, with descending momentum signaling a sell and ascending momentum signaling a buy.

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    Roc Momentum

    Original Title

    Roc Momentum

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    Momentum and rate of change (ROC) are technical analysis indicators showing the difference between today's closing price and the close n days ago. Momentum is the absolute difference in stock prices, while ROC scales by the old close to represent the increase as a fraction. These indicators remain positive during an uptrend and negative during a downtrend. Crossing up through zero may signal a buy, while crossing down may signal a sell. The higher or lower the indicators, the stronger the trend. Momentum shows absolute changes in dollar terms, while ROC shows changes proportionally. Conventionally, momentum is used as a trend-following indicator, with descending momentum signaling a sell and ascending momentum signaling a buy.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    37 views2 pages

    Momentum (Technical Analysis) : For Other Uses of "Momentum", See

    Uploaded by

    Ashish Tripathi
    Momentum and rate of change (ROC) are technical analysis indicators showing the difference between today's closing price and the close n days ago. Momentum is the absolute difference in stock prices, while ROC scales by the old close to represent the increase as a fraction. These indicators remain positive during an uptrend and negative during a downtrend. Crossing up through zero may signal a buy, while crossing down may signal a sell. The higher or lower the indicators, the stronger the trend. Momentum shows absolute changes in dollar terms, while ROC shows changes proportionally. Conventionally, momentum is used as a trend-following indicator, with descending momentum signaling a sell and ascending momentum signaling a buy.

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    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
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    Momentum (technical analysis)

    From Wikipedia, the free encyclopedia


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    For other uses of "Momentum", see Momentum (disambiguation).
    Momentum and rate of change (ROC) are simple technical analysis indicators shoing
    the difference !eteen today"s closing price and the close # days ago$ %omentum is the
    a!solute difference in stock, commodity:
    Rate of change scales !y the old close, so as to represent the increase as a fraction,
    "Momentum" in general refers to prices continuing to trend$ &he momentum and ROC
    indicators sho trend !y remaining positive hile an uptrend is sustained, or negative
    hile a dontrend is sustained$
    ' crossing up through (ero may !e used as a signal to !uy, or a crossing don through
    (ero as a signal to sell$ )o high (or ho lo hen negative) the indicators get shos
    ho strong the trend is$
    &he ay momentum shos an a!solute change means it shos for instance a *+ rise over
    ,- days, hereas ROC might sho that as -$,. for a ,./ rise over the same period$ One
    can choose !eteen looking at a move in dollar terms, relative point terms, or
    proportional terms$ &he (ero crossings are the same in each, of course, !ut the highs or
    los shoing strength are on the respective different !ases$
    &he conventional interpretation is to use momentum as a trend0folloing indicator$ &his
    means that hen the indicator peaks and !egins to descend, it can !e considered a sell
    signal$ &he opposite conditions can !e interpreted hen the indicator !ottoms out and
    !egins to rise$
    123
    SMA[edit]
    %omentum is the change in an #0day simple moving average (4%') !eteen yesterday
    and today, ith a scale factor #52, i$e$
    &his is the slope or steepness of the 4%' line, like a derivative$ &his relationship is not
    much discussed generally, !ut it"s of interest in understanding the signals from the
    indicator$
    When momentum crosses up through (ero it corresponds to a trough in the 4%', and
    hen it crosses don through (ero it"s a peak$ )o high (or lo) momentum gets
    represents ho steeply the 4%' is rising (or falling)$
    &he &R67 indicator is similarly !ased on changes in a moving average (a triple
    e8ponential in that case)$

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