Momentum is a non-normalized oscillator that also has a trend-indicating function: it helps to determine the direction of an active trend. This indicator compares the closing price of the current time interval with the closing price of the previous period. In essence, Momentum shows the speed (tempo) and direction of price change.
The popularity of Momentum is due to its simplicity, versatility and the fact that it can periodically give leading signals. Momentum assesses the rate of change in quotes and helps determine whether the trend is accelerating or slowing down. It can also be used to find pivot points on the price chart. The Momentum indicator is built in a separate window under the price chart.