Momentum
Returns the Momentum indicator, which measures the rate of change in a stock's price by comparing current price to the price N periods ago.
How Momentum Works
- Positive momentum: Current price is higher than N periods ago (uptrend)
- Negative momentum: Current price is lower than N periods ago (downtrend)
- Zero line crossover: Potential trend change signal
Calculation
Momentum = Current Price - Price N Periods Ago
Parameters
| Parameter | Description | Default |
|---|---|---|
| Symbol | Stock ticker symbol | Required |
| Days | Number of periods to look back | 10 |
| StartDate | Calculate momentum as of this date | Today |
Interpretation
| Value | Meaning |
|---|---|
| Rising positive | Strengthening uptrend |
| Falling positive | Weakening uptrend |
| Rising negative | Weakening downtrend |
| Falling negative | Strengthening downtrend |
Examples
When to Use
- Identify trend strength and direction
- Detect potential trend reversals at zero crossovers
- Compare momentum across multiple stocks
- Confirm price breakouts with momentum
- Simple trend-following strategies
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Need bounded 0-100 indicator | RelativeStrengthIndex() |
| Need overbought/oversold signals | RelativeStrengthIndex() or WilliamsR() |
| Need volume-weighted analysis | MoneyFlowIndex() |
| Need percentage rate of change | Calculate manually or use TechnicalIndicator() |
Common Issues & FAQ
Q: Why is Momentum returning "NA"? A: Check that:
- The symbol is valid and actively traded
- There is sufficient historical data for the period
- The stock has been trading for at least the number of days requested
Q: How do I interpret momentum values? A: Momentum is unbounded - the value depends on stock price. A $200 stock will have larger momentum swings than a $20 stock. Compare momentum over time for the same stock, not between different stocks.
Q: What period should I use? A: Common periods:
- 10 days is the standard default
- 5-7 days for short-term trading
- 14-20 days for medium-term analysis
Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS
Get started today
▶
How does MarketXLS work?