Momentum Raw Pass Node
Raw Momentum — Series Input
Overview
The Momentum Raw Pass Node computes the classic raw momentum on a series input. It measures the absolute price change over a fixed lookback period — the simplest and most direct measure of price momentum.
Unlike ROC which normalizes by the prior price, raw momentum returns an unbounded absolute difference. This makes it scale-dependent but preserves the magnitude information, which is useful for cross-asset comparisons when assets are at similar price levels or for detecting acceleration in price movement.
Formula
Parameters
| Parameter | Default | Description |
|---|---|---|
| period | 14 | Number of bars to look back for price comparison |
Inputs & Outputs
| Slot | Direction | Type | Description |
|---|---|---|---|
| input | Input | { values, timestamps } | Price or any numeric series |
| values | Output | (number | null)[] | Raw momentum values (unbounded); nulls during warm-up |
| timestamps | Output | number[] | Unix timestamps aligned to input |
Use Cases
Zero-Line Crossover Signals
When raw momentum crosses above zero, price is higher than n periods ago — a simple directional signal. Crossing below zero indicates the opposite. Smooth the momentum series first to reduce noise.
Momentum Divergence
Compare raw momentum peaks to price peaks. Declining momentum while price rises warns of diminishing buying pressure, often preceding reversals.
Momentum Building Block
Raw momentum is the basis for many other indicators. Pipe it into a smoothing node (EMA, Laguerre Filter) to create a custom momentum oscillator tailored to specific market conditions.
Tips & Best Practices
Scale Dependency
Raw momentum is price-scale dependent — a $5 move on a $50 stock is very different from a $5 move on a $500 stock. For cross-asset comparisons, prefer ROC (normalized) instead.
Smooth Before Using
Raw momentum can be noisy on short periods. Apply an EMA or moving average to the momentum output to smooth it before generating signals or using it in other calculations.
Acceleration Detection
Apply this node twice with different periods and compare — the rate of change of momentum (momentum of momentum) detects acceleration in price movement, a powerful early signal.