Analysis of Asset Allocation

Financial Tutorial  
Discuss about Equities in our Free Forum

Did you Know?
Futures contracts also have a price: click here to know how to compute it.

Oscillators: Momentum%
All information are subject to terms of use

Computation

The momentum% is very closed to the momentum. it's compute like a normal momentum that you divide by the highest absolute value to have the momentum in the range -1/+1 or -100%/+100%.

With:
Pt today's price.
Pt-n the price at the date t-n

The momentum is:

MOt = Pt - Pt-n

if MOmax the highest absolute value of the momentum.

The momentum% is:

MO%t = MOt MOmax

Lags used are the same as the ones used for the momentum (5, 10, 20, 25 and 28 days).

Interpretation

The interpretation is exactly the same as the one for the momentum.

The purchase signal is given by the momentum% when it changes from a negative value to a positive and the sale signal when it's from positive to negative.

Graph Example: Momentum%

On the upper side of the graph you see the price line and the 100 days moving average. The momentum 10 days is in the bottom side of the graph. The 0 level is indicated by the green line. 

Go to: Top of page - Next Topic - Shares Index - Home

Copyright 2001-8 Sunilcare,. All Rights Reserved.
Sunilcare Group sites: English HTMLFORALL / French ANALYSE des Avoirs Relax energie
Comments or suggestions? Contact the webmaster. View our Privacy Policy. Labeled with IRCA