Forex Indicator – Momentum settings:
Any price chart is an ordinary sequence of numbers, in other words, a number of dynamics, so for its analysis, you can safely apply mathematical and statistical tools, including the indicator Momentum.
It can not be said that this algorithm was invented specifically for the analysis of trends in financial markets, yet a similar approach was used by economists and earlier in the process of studying the situation in the economy. Anyway, today many people learn about the “momentum” after acquaintance with the stock exchanges and the Forex market.
The indicator Momentum is calculated in one action – from the current market price the price fixed by N-periods back is subtracted. To obtain the final result, no averaging, divisions and other transformations are applied.