Momentum oscillators are used to measure the speed or direction of price price change. The formula for a price momentum oscillator is really simple: M = V - Vx where V is the closing price and Vx is the closing price "x" days ago. Let's look at some examples:In this weekly Japanese candlestick chart of the gold ETF - ( GLD ) , below I can see the 12-week price momentum study. In this daily bar chart of the Dollar Index, below, we can see the movement in the 12-day momentum study. The dollar weakened from November to January and the momentum study shows us a pattern of higher lows from November to December to January.

Source: Wall Street Journal April 07, 2023 20:52 UTC