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Momentum

Trading Term

The Momentum is the difference between the current point (price or something else) and the point N periods ago. Momentum is calculated as a ratio of today’s price to the price several (N) periods ago.

Momentum = CLOSE(i)/CLOSE(i-N)

Where: CLOSE(i) — is the closing price of the current bar. CLOSE(i-N) — is the closing bar price N periods ago.

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