Momentum LE

Definition

The Momentum indicator is a leading indicator measuring a security's rate-of-change. It compares the current price with the previous price from a number of periods ago. As the price increases, the momentum will increase. The ongoing plot forms an oscillator that moves above and below 0. It is a fully unbounded oscillator and has no lower or upper limit.

The Momentum LE generates a long entry order if the current bar's High is higher than the upper channel band of the previous bar. The trades are generated based on whether a symbol breaks out from a channel or not. The channel is dependent on the number of bars Length specified in the Length input.

This strategy will generate a long entry only. Use Momentum SE for entering a short trade.

Commission or slippage are not taken into account for strategy calculation.

Default Inputs

Price sets the price value to be used for calculation, close by default.

Length sets the number of bars used for calculation, 12 by default.