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Momentum is simply the Close minus the Close of N(number) of days
ago(C-C[9]). Actually there are many types and ways to calculate Momentum.
Cynthia Kase has one that uses a standard deviation of a logarithm of a
price ratio. It's not bad. My reading says that momentum does not actually
measure true momentum because it does not allow for inertia. Of course some
relationships between data, indicators etc. are more valid and meaningful
then others.
Regards,
Brent
> I still
> have no idea how momentum is calculated - should be something like price
> compared to a former range. Is that correct? Just wonder if that would
mean
> anything.
>
> Thanks again - Ulrich
>
>
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