The NYSE Tick represents the number of stocks ticking up minus the number of stocks ticking down on the NYSE, it can be used as a barometer for short term momentum of stocks trading on all US Exchanges.
Showing posts with label Classic Indicators. Show all posts
Showing posts with label Classic Indicators. Show all posts
Thursday, August 4, 2011
Tuesday, June 28, 2011
The Momentum Indicator
Momentum measures the amount that a price has changed over a given time span. The ratio is calculated by the following formula:
Momentum = (C/Cn)*100
where C is the most recent closing price, and Cn is the closing price n periods ago.
Trend followers buy when the momentum indicator bottoms and turns up, crosses above some absolute threshold, crosses above some moving average of itself, or shows some positive divergence relative to price. Trend followers would sell when the opposite conditions apply.
Momentum = (C/Cn)*100
where C is the most recent closing price, and Cn is the closing price n periods ago.
Trend followers buy when the momentum indicator bottoms and turns up, crosses above some absolute threshold, crosses above some moving average of itself, or shows some positive divergence relative to price. Trend followers would sell when the opposite conditions apply.
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