Momentum

How many points the close has risen or fallen over the last n candles.

4 min read

What it measures

The Momentum subtracts the close from a number of candles ago from the candle’s close. The result is in points, not a percentage: if it reads 12, the close is 12 points above the close n candles ago. If it reads −8, it’s 8 points below.

1-minute ES candlestick chart with the Momentum in its strip, ice when rising and pink when falling
The default Momentum below a 1-minute ES chart: a line that switches from ice to pink as it rises or falls, with the zero line.

How it’s calculated

Momentum = close − close n candles ago

  • n is the Period: 10 by default.
  • The first n candles on the chart read 0, because there is no close from n candles ago yet to subtract.

How to read it

  • Against zero: above it, the close is higher than n candles ago; below it, lower. When the line crosses zero, the sign of that difference changes.
  • Slope: if the line rises, the difference is growing; if it falls, it’s shrinking. With the default colors, ice means rising and pink means falling.
  • Height: the farther from zero, the bigger the move over those n candles. The line’s peaks and troughs can be compared with earlier ones on the same chart.
  • Divergences: price making a higher high while the Momentum makes a lower high says the move is losing strength, and vice versa.

The Momentum doesn’t mark signals on the chart: it’s the line and nothing else.

Adding it to the chart

In the chart bar, Indicators ▾ › More Indicators…. You’ll find it in the Oscillators / Momentum category. It’s drawn in its own strip, below the candles. How to adjust a strip is in Indicators.

Settings

Open them by double-clicking its strip, or with the ⚙ on its row in Indicators ▾. Each section collapses and expands on its own.

Momentum settings panel in Forge, with the Momentum, Drawing, Strip and Grid sections
The Momentum settings, with their default values.
SettingDefaultWhat it does
Momentum
Period10How many candles back the close being subtracted is. From 1 to 500.
Drawing
ColoringBy slopeBy slope: one color if the line rises and another if it falls. By sign: one color above zero and another below it. Single color: the whole line in the same one.
Color when rising (and positive) · Color when falling (and negative)Ice · PinkThe two colors of the By slope and By sign modes.
Single colorVioletThe line’s color with Single color.
Width1 pxFrom 0.5 to 6 px.
Drawing typeLineLine, Area, Histogram, Stepped or Dots.
Strip
Zero line · Zero line color (0 = automatic)Yes · AutomaticThe line that separates positive from negative.
Value on the axisYesThe tag with the last candle’s value.
Strip height92 pxFrom 40 to 400 px.
Grid
Draw grid · Color (0 = automatic) · DivisionsNo · Automatic · 4Horizontal reference lines in the strip. From 2 to 10 divisions.
Neural
Glow (Neural theme)Yes, when addedA halo of light in the color of each line or mark, like the one on the Neural theme candles. A newly added indicator comes with it checked; the ones you already had saved don’t.
Glow intensity (%)60%From 0 to 100%.

Settings belong to each chart: changing the Momentum on one chart doesn’t change it on another.

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