Oscillators
Momentum
Compares today's price with the price a set number of candles ago: above 100 means higher, below 100 lower.
The idea in plain words
The simplest way to measure speed: how much has the price changed over the last N candles? If that change is getting smaller, the move is slowing down.
How it is calculated
Today's close divided by the close N candles ago, times 100.
Momentum = close ÷ close N candles ago × 100 (default N = 14)How to use it
- Crossing above 100: the price is higher than N candles ago (upward momentum).
- Peaks in Momentum often come before peaks in price.
Drawing conclusions
- Falling Momentum while the price still rises shows a slowing advance, not yet a reversal.
Example
EURUSD is at 1.0950; 14 candles ago it was 1.0800. Momentum = 1.0950 ÷ 1.0800 × 100 = 101.4.
Prices in examples are illustrative.
Watch out for
- It reacts to the price N candles ago too: a big candle dropping out of the window can move it.
A little history
One of the oldest technical indicators, a direct measure of rate of change.
Educational content only. No indicator or pattern predicts the future, and nothing here is investment advice.