Calculating Momentum A New Way by Darryl W. Maddox
ARTICLE SYNOPSIS ...Calculating Momentum A New Way
by Darryl W. Maddox
Traditionally, the calculation of market momentum has been a difference calculation. Thus, a
momentum indicator for the Dow Jones Industrial Average is calculated by subtracting the closing value
on one date from the closing value on some later date and by doing so, momentum curves are constructed
for various time frames ranging from a few days to a few months.
Calling the result of a difference calculation ""momentum"" has bothered me since I started to learn about
the market. Having been trained in physics, I thought a momentum indicator s...