Description
The Momentum Percent Diff is a momentum-based technical indicator. Unlike the regular Momentum study, which analyzes the difference between the current and a past price value, this indicator takes into account the current and a past value of a moving average.
The Momentum Percent Diff calculates the percent ratio of the current simple moving average value to its past value. This ratio is then smoothed by another simple moving average; the difference between the original ratio and its moving average produces the main histogram plot. Histogram crossovers above and below the zero level may indicate important trading signals.
Input Parameters
price
|
The type of price with which the moving average is calculated. |
price average length
|
The length of the price moving average. |
momentum length
|
Defines the offset for finding the past value of the moving average. |
momentum average length
|
The length of the moving average applied to the ratio. |
show breakout signals
|
Controls indication of histogram crossovers with the zero level. |
Plots
MomentumHistogram
|
The Momentum Percent Diff histogram. |
ZeroLine
|
The zero level. |
UpSignal
|
If enabled, displays an up arrow every time the histogram crosses above the zero level. |
DownSignal
|
If enabled, displays a down arrow every time the histogram crosses below the zero level. |
Example*
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.