FAQs

Monthly Price Momentum FAQs

Is this time-frame dependent?

The formula is scale-agnostic, but “30 days” is most natural on Daily charts. On intraday, you’re measuring the last 30 daily closes’ effect—still valid, but interpret accordingly.

Does smoothing add lag?

Yes, slightly. Smoothing (EMA) improves readability at the cost of a bit of delay. Use a smaller value for quicker reacts, larger for calmer visuals.

How do I choose a good Upper Level?

Scan history: pick a value that captures strong thrusts without triggering constantly (e.g., +20–25% for low-vol, +30–40% for high-beta).

Can I add a lower threshold line (e.g., −20%)?

This version exposes only the upper level; you can still monitor a custom negative threshold by eye or with a separate horizontal line on the chart.

Does it repaint?

No. The ROC% and EMA use completed data and lock after bar close; values update intrabar as normal during formation.