Indicator Description

MTM (Momentum) is a momentum indicator that reflects momentum changes and trend strength in the market by calculating the speed of price changes.

Function Information

• Function Name: MTM
• Input Parameters: Open
• Parameter Settings: timeperiod1 (default: 13), timeperiod2 (default: 5)
• Output: mtm, amtm

Calculation Principle

MTM is calculated using the following formula:

MTM = Close - Close[timeperiod1]
AMTM = MA(MTM, timeperiod2)

Where Close[timeperiod1] is the closing price N periods ago and MA is the moving average.

Usage Scenarios

1. Momentum change analysis
2. Trend strength judgment
3. Divergence signal identification
4. Trading signal generation

Usage Recommendations

1. MTM turning from negative to positive can be seen as a buy signal
2. MTM turning from positive to negative can be seen as a sell signal
3. Use in combination with moving averages
4. Pay attention to the use of divergence signals