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Re: Momentum & Velocity



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Gary,

>From a practical point of view (as opposed to theoretical) wouldn't the
slope of the momentum curve give you what you are looking for?

Gary Fritz wrote:

> So Momentum measures "how fast" the price is moving.  This seems to
> be useful, but you'd also like to know how fast the MOMENTUM is
> changing -- which is the acceleration.
>
> Why is this of interest?  Because the Momentum crosses zero at market
> turning points.  When the market is moving up, Momentum is positive;
> when it's moving down, Momentum is negative.  If the Momentum is
> changing at a constant rate, then you can predict WHERE the market
> will turn, which would obviously be useful information.  Constantly
> changing momentum means a constant Acceleration.  Unfortunately the
> market very seldom has a constant Acceleration, so I'm not entirely
> sure how to work with the changing Acceleration.  (Do we need to take
> another derivative of Acceration to see how *it's* fluctuating??
> Seems like you could keep this up to the Nth degree until you delay
> the signal beyond any usefulness...)
>