The Momentum Percent Diff indicator calculates the percentage difference between a security's price and its moving average, aiming to identify potential shifts in momentum.
Up Signal: Green arrows that may suggest a shift toward bullish momentum.
Down Signal: Red arrows that may suggest a shift toward bearish momentum.
Momentum Histogram: A bar chart that represents the calculated percentage difference.
Zero Level: A line that serves as a neutral point of reference.
Parameters:
Price: Users can select from various price types, such as Close, High, Low, Open, Volume, or VWAP, to influence the momentum calculation. The default option is 'Close.'
Price Average Length: This parameter specifies the number of periods used to calculate the price average. It is initially configured to 21 periods.
Momentum Length: This option designates the number of periods used in the core Momentum calculation. The default setting is 22 periods.
Momentum Average Length: This setting dictates the number of periods used for the momentum moving average. Initially, it is set to 7 periods.
Show Breakout Signals: When this option is checked, the chart will display Up and Down signals represented by green and red arrows, respectively.
Momentum Percent Diff Indicator subgraph on chart
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.