Momentum and rate of change (rate of change, ROC) is a simple indicator in technical analysis showing the difference between today's closing price and the closing price n-days ago. Momentum is the difference occurs.
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Scale level changes measured by the closing price of the old one to describe the increase as a fraction of:
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Momentum in general is the price which is a continuation of the trend. And the rate of change of momentum indicators show a positive value when the price increases and a negative value when the decline in prices.
Crossings rise up through the zero value can be used as an indicator buy signal, and vice versa at crossings dropped down through zero is a sell signal indicator. How low (when negative) or high (when positive) indicator can show how strong a trend.
The way momentum shows the absolute change for example if there is an increase of 300 throughout the 20 days, which shows that the rate of change as 0.25 for a gain of 25% over the same period.
