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ZapCLI

Momentum

Syntax

this.mm(len, symbol, options?)
this.mm(len, data, options?)

Description

The mm function calculates the momentum of price data over a specified period for a given symbol or array of numerical data.

Momentum measures the rate of change in price over time and helps identify the strength or weakness of a trend. Positive momentum indicates upward price movement, while negative momentum indicates downward price movement.

Returns

The mm function returns a single value representing the momentum of the price data over the specified period. If the rolling option is specified, it returns an array of momentum values for the specified rolling period.

Parameters

  • len: The length of the period over which to calculate the momentum.
  • symbol or data: Either the symbol for which to calculate the momentum or an array of numerical data.
  • options? (optional): An object with the following optional properties:
    • rolling: The number of data points for which to return the momentum values. If specified, an array of momentum values is returned.
    • offset: The number of data points ago to start the calculation. Default is 0 (current data point).

Examples

Using with Symbol and Length

// Calculate the 14-day Momentum for AAPL
this.mm(14, "AAPL")
//=> (example value)


// Calculate the 14-day Momentum for AAPL with rolling values for the last 5 days
this.mm(14, "AAPL", { rolling: 5 })
//=> (example value)

Using with Numerical Data

// Calculate the Momentum for an array of numerical data (data is the last 14 days)
this.mm(14, [50, 52, 48, 55, 51, 49, 53, 57, 54, 56, 55, 52, 58, 60])
//=> (example value)

Use Cases

Identifying Trend Strength:

// Calculate the 14-day Momentum for AAPL
const momentumValue = this.mm(14, "AAPL")


// Use the momentum value to identify the strength of the trend
if (momentumValue > threshold) {
    console.log("Strong upward momentum, consider entering a long position")
} else {
    console.log("Weak or no momentum, consider staying on the sidelines")
}

Buy top 2 stocks by momentum:

const symbols = [
  "MSFT",
  "ADBE",
  "ADSK",
  "CRM",
  "AAPL"
]
const sortedSymbols = symbols.sort((a, b) => this.mm(14, b) - this.mm(14, a))


// Buy TOP topX
for (let i = 0; i < 2; i++) {
  this.buyAmount(sortedSymbols[i], 100)
}


this.balance()

Notes

  • Momentum is a key indicator used by traders to assess the strength and direction of price trends.
  • Positive momentum suggests bullish price movement, while negative momentum suggests bearish price movement.
  • Traders often use momentum in combination with other technical indicators to make informed trading decisions and identify potential entry or exit points.