Momentum index principle
The principle of momentum index is complex, which cannot be understood fundamentally, and it is easy to use momentum index wrongly. It is on the rise, indicating that the gap between the current closing price and N is widening. At this time, the market price is accelerating. If the change rate index ROC is used instead, the conclusion is exactly the same. The market situation is the best time to be bullish and intervene, because prices are accelerating. You can make a lot of money quickly after buying it. On the other hand, if the momentum index is in a state of decline, it means that the price is accelerating, and it will be more beneficial to hold an empty order. This paper mainly talks about the meaning of mma index, and the content is for reference only.