Momentum Indicator on a Live Gold Chart

What it shows

A pane of its own holds one line in the chart’s price units, with no guide lines. It touches zero exactly when the latest price matches the price 10 candles earlier.

How Pravex works it out

Take the source for each candle. The default is the close.
Momentum = the source now − the source Length candles ago. Length is 10 by default.
The first 10 candles have nothing to subtract from, so they get no value.

Settings

Setting	Default	What changing it does
Length	10	How many candles back the comparison reaches. A shorter length shows only the latest push; a longer one shows the net move over a longer stretch.
Source	close	The price on both ends of the subtraction. hl2 compares candle midpoints, which keeps one closing spike from swinging the line.

How traders read it

The line is a net change over a window, so it answers one question: where is price now compared with where it was Length candles back. Above zero is higher, below zero lower, and the size shows how far.

A line rising while price rises says each new candle is adding to the gain over the window. A line that flattens or turns down while price is still climbing says the latest candles are gaining less than the ones that just left the window.

A zero cross works as a blunt trend filter. A new price high while Momentum makes a lower high is the other thing worth spotting.

When it misleads

The line only compares two prices, the latest and the one Length candles back. Everything between them is ignored, so a sharp spike and a slow climb can give the same reading. A big candle dropping out of the window also makes the line jump even when nothing is happening now. Because it is in price units, its size cannot be compared across timeframes or between gold and other charts.

Questions and answers

What does the Momentum indicator show?

The change in price over the last 10 candles, in price units. Above zero means the latest price is higher than the one from 10 candles ago, and below zero means lower.

What is the difference between Momentum and Rate Of Change?

Momentum is the plain difference between the two prices. Rate Of Change divides that difference by the older price and multiplies by 100, so it is a percentage.

Why does Momentum move when gold is flat?

Because the price from 10 candles ago keeps changing. If a big candle sits at the far end of the window, the line jumps the moment it drops out, even though the current candle did nothing.

Can I compare gold Momentum with bitcoin Momentum?

Not directly. The line is in each market’s own price units, so 15 means 15 dollars on gold and 15 dollars on bitcoin, which is a tiny move there. Use Rate of Change for a percentage you can compare.