MTM (Momentum)

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 reflects the speed of price changes by calculating the difference between the current price and the price N periods ago. When MTM is positive, it means the price is rising; when MTM is negative, it means the price is falling.

Application Scenarios

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

Usage Suggestions

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