The result will be a positive or negative number that will fluctuate around zero points or line. All this looks very simple, but the momentum indicator also has other more sophisticated features. Contracts (trading) with underlying assets in transactions with unrated over-the-counter financial instruments in the financial markets are associated with financial loss risks (the size of which may be significant). Increasing the personal level of awareness of the principles, regularities, and peculiarities of trading in underlying assets in transactions with off-market over-the-counter financial instruments in financial markets, as well as increasing personal financial literacy, is an additional guarantee of a successful trade. The formula is as follows: M = Pt - Pt - n where M - momentum, Рt - today outdoor fiber distribution box closing price, and Рt-n - closing price for n periods (usually n days) to Pt. Risk Warning Trading in off-market over-the-counter financial instruments is a highly risk-based activity that involves not only the ability to generate profits but also the risk of causing losses.Technical indicators Forex momentum measures the degree of change in the value of a financial instrument for a specific time period.

Forex momentum indicators give the trader an exact measure of the speed of the currency market and the limit to which trend is still valuable. In addition to a fairly simple response to the direction of price movement, the momentum indicator can change the direction even before it makes the price. It is used to demonstrate the direction of the trend and may also give good reciprocity over repossession/resale, which makes it a useful counter-trading tool. If the currency market moves up, the momentum indicator will cross the zero line from the bottom up and keep the slope up. But when the market is approaching its peak and closing prices are getting closer, the momentum indicator is slowing significantly and the line of time becomes horizontal or leaning down, despite the fact that prices can continue to rise.

The indicator of the momentum is difficult to attribute to those tools that follow the trend, and can not be entirely attributed to the counter-party. If the market moves down, then the momentum will cross the zero level from top to bottom and keep the slope down. 10-period indicator Forex momentum The result of this calculation is a  technical study, which, as a rule, fluctuates near the zero lines. This Forex indicator is very popular among traders for its simplicity and versatility, and also one should take into account that it is considered rather rare "outgoing indicator". The value of n is the only part of the formula that can be modified by the trader, and most often the value of.

This indicator, which may seem simple at first glance, actually contains a lot more information than it seems. The program packages allow the user to choose for opening, peak, closure, and some other price values for periods of time. For example, the further the price of Pt and Pt - n, the greater the distance between the values of the moment. His calculations are fairly simple: the closing price n days ago is deducted from today's closing price.. When the market moves rapidly in the ascending direction, the indicator also behaves like a momentum