The Momentum Indicator

Momentum

Momentum measures the speed of price change and provides a leading indicator of changes in trend. The momentum of a security is the ratio of today's price compared to the price x-time periods ago. The calculation is shown below:

10 period momentum = (today's close / close 10 periods ago ) x 100

The Momentum line leads price action frequently enough to signal a potential trend reversal in the market.
Momentum indicators can warn of dormant strength or weakness in the price well ahead of the turning point.
At extreme positive values, momentum implies an overbought position; at extreme negative values, an oversold position.

Metastock code for the Momentum Indicator can be found here