Momentum (Rate of Change - Absolute) (MOM)

MOM is the simplest momentum indicator, calculated as the absolute price difference over a specified period: MOM = Price - Price[n periods ago]. With default 10-period, MOM = Current Price - Price 10 bars ago. Positive values indicate upward momentum; negative values indicate downward momentum. Unlike ROC or ROCP which express momentum as percentages, MOM shows absolute price change in the asset's native units. Zero line represents no momentum.

Cryptocurrency traders use MOM for straightforward momentum measurement in price units. MOM crossing above zero signals bullish momentum emerging; crossing below signals bearish momentum. The magnitude of MOM indicates momentum strength - larger absolute values mean stronger momentum. MOM works well for identifying momentum shifts early, spotting divergences (price makes new high but MOM doesn't - bearish divergence), and confirming trend strength. Because MOM values are in price units, they're less suitable for comparing different-priced assets but intuitive for single-asset analysis. Combine with trend indicators for directional context, with oscillators for overbought/oversold levels, or smooth with MA to reduce noise. Popular foundation indicator for momentum strategies.