Momentum Indicator

The momentum indicator is ROC without the division. It says how many points price has moved over N bars. Zero means the close is unchanged from then. It is the oldest momentum idea: a market with positive momentum is higher than it was. The name is generic, so confirm the platform is plotting the difference and not a percent or an RSI.

Because it is in points, a move of 10 on a 50-rupee stock looks like a move of 10 on a 5,000-rupee stock. They are not the same event. Use ROC when you compare instruments. Use momentum when you care about points in one instrument. The shape of the line, crosses of zero, and divergences read the same way as ROC.

A cross above zero means the close has risen over the window. Holding positive momentum while price pulls back slightly means the pullback has not erased N bars of gain.

A cross below zero means the close is lower than N bars ago. In a range, zero crosses will chop. Filter with trend or expect the chops.

Calling a momentum divergence a reason to short a bull market without a price break. The difference can shrink while price still makes highs, which is slowing, not collapsing.

Endpoint math ignores the route. And the units do not travel across symbols or across a stock that has split, unless the history is adjusted and you remember that points changed meaning.