> For the complete documentation index, see [llms.txt](https://docs.thirddimension.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.thirddimension.exchange/analytics-panels/chart/technical-indicators/oscillators/momentum.md).
# Momentum
## Description
Momentum indicator shows an acceleration of price movement. From technical point of view it is the difference between current price and close price N-periods ago. Firstly introduced by John J. Murphy in "Technical Analysis of the Financial Markets" Momentum fixedly joined to traders arsenal. In spite of age this indicator is still actual and widely used
## Formula
Momentum = Close - Close(N-periods ago)
Where: Close - current close price Close(N-periods ago) - the close price N-periods ago
## Most useful cases
**Trend indicating -** crossing a zero line could be used as an indicator of a new trend wave.
* **Divergence/Convergence** - Divergence/Convergence pattern is a form of price action when new high(low) of the price not confirmed with a new high/low of Momentum. Such price and indicator’s behavior can be interpreted as the weakness of current existing trend.
