Using spreadsheet to produce MTM indicators (Momentum)

Stock Exchange and Market Analysis

Technical Analysis (15)

Momentum indicator is a pioneer in the analysis of the American form of technology - Gaite Lei ( HM Gartley ) in 1935 for measuring the rate of year of ups and downs of the proposed technical indicators . The so-called momentum indicator - MTM ( Momentum) is the trend line calculated by subtracting the closing price before n days from today's closing price . The implied is the speed of the stock price change between n days , which can be observed during the rise and fall. The strength of the ups and downs , when the MTM is positive , it indicates that it is in a strong upward stage . When the MTM starts to level off , it indicates that the rising strength is slowing down . When the MTM goes down but still maintains a positive value, it indicates that it has entered the end of the uptrend. , once the MTM becomes negative , indicates to the head area , the share price is subject to downward reversal .By the same token , when MTM is negative , it means that the stock price is in a weak stage , and the fall is not limited . When MTM starts to level off , it means that the downtrend is slowing down . When the MTM goes up but still maintains a negative value, it means into the end of decline , once the MTM becomes positive , indicates to the bottom of the zone , the share price may at any time turned upwards . compared to the rate of change (ROC, rate of change) indicators , can be found MTM again divided by n days before the closing price will be equal to the ROC, so the two have the same purpose . today, let us according to MTM import mathematical formulas Excel spreadsheet :
MTmn _t : The n day momentum indicator (the MTM) of Day t, the following formula :
MTMn _t = C _t - C _t-n
  C _t = closing price on the tth day
  C _t-n = the closing price of the t-n day
Just the same as ROC indicator, momentum index of n values can not be taken too small or too large , usually still 10 as a reference value , in order to observe a two-week short-term stock price up or down trend . If you want to observe the long-term trend , the n value can be selected 20 or greater . As MTM may rise and fall, it may oscillate up and down . It is usually followed by the MTM moving average as a reference for entering and exiting stocks . The formula is as follows :
MTMAn _t : n day moving average momentum of Day t
MTMAn _t
  = (MTMn _t + MTMn _t-1 + ... + MTMn _t-n+1 ) / n
When MTM in the positive region is down through the MTMA (called the Death Cross), it is usually a sell signal , and vice versa when MTM in negative territory is up through MTMA (called the Golden Cross), A buy signal appears. Although It is the general rule of entering and exiting stocks , but it is better to observe the stock price trend chart of the subject matter for at least one year and then make appropriate corrections against the technical indicators . Finally, in order to facilitate the readers to use the MTM indicator, the author is still based on Juyang ( Template), continue to produce an analysis sample in Excel format for the reader's reference :

Template15.xlsx

This sample except the " historical stock " provides spreadsheet MTM and MTMA external reference index , and the second spreadsheet provides the candlestick graph , daily , MTM and MTMA trend line for reference . If you find any mistakes, please do not hesitate to correct me . Thank you !
In addition , the author made spreadsheet for various indicators (moving average , RSI, BIAS, stochastic KD line, William indicator , MACD, CDP and Bollinger band) for stock analysis , and further produced candlestick charts and other technical indicators on the same chart , interested readers can refer to Ref.1.
Reference (Ref):
1. Investment Financial Notes - Stock Technical Analysis