Smoothed Momentum as a Moving Average of a Price Momentum Ratio

Summary

The document describes a configurable momentum indicator with inputs for the calculation period, whether to smooth the reading, the smoothing period and method, and the applied price. Its stated raw calculation compares a one-period simple moving average of the selected price with that average shifted back by the momentum period, expresses the ratio as a percentage, and optionally applies another moving average to the result.

The description distinguishes smoothed and unsmoothed settings but provides no trading rules, signal thresholds, market examples, or performance evidence. It also does not explain how to interpret positive or negative readings or which smoothing settings to choose. The indicator is therefore a calculation description, not a tested strategy; users would need to define and evaluate any trading application separately.

Key ideas

• The indicator computes momentum from a ratio between a one-period price average and its value from an earlier period.
• The raw ratio is scaled as a percentage.
• Users can optionally smooth the momentum series with a selected moving average method and period.
• The document provides no signal rules, parameter guidance, or performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.