Rate of Change (ROC) and Momentum Oscillator

[DaveSkender]

Community discussion about Rate of Change (ROC), Momentum Oscillator, and ROC with Bands

[kavatari]

Hi @DaveSkender
currently, I am trying to understand some deviations in the Momentum (14) calculation. Using the same data set for the Momentum (14) calculation, I have following deviations between this .NET library and Highcharts...
For the calculation I provide 50 quotes to the library...
The results:
.NET lib: -2.72
Highcharts: -3.38

Could you give me a hint why is there a deviation?

[DaveSkender]

This is what I’m seeing (rare, alternative definition for Momentum Oscillator):

Momentum Oscillator = (Price today / Price n periods ago) x 100

whereas most places define the Momentum Oscillator the same as our library:

Rate of Change = ((Price today / Price n periods ago) - 1) x 100

These are effectively the same but scaled differently.

And for clarity

Momentum = Price today - Price n periods ago

[kavatari]

Thanks for the clarification, I will dig into it and do some tests :) We keep you posted here.

[kavatari]

I did the math and looked once again at Highcharts...they have also the "Rate of Change" as a separate indicator and the results are the same compared with this wonderful .NET lib.
@DaveSkender thanks once again for the clarification.

[DaveSkender]

Were you able to determine what their Momentum indictor does? I’m curious, but not enough to go look myself. 😬

[kavatari]

Yes, it does exactly this:
Momentum = Price today - Price n periods ago

So, it was just a confusion on my side and I just needed a clarification.