MTM (Momentum): calculation and reading

MTM is the difference between today’s close and the close N days ago, measuring how much price has changed over that period.

Updated：2026-11-08

Calculation

MTM = today’s close − the close N days ago, with a default N = 10.

• Greater than 0: today’s close is higher than N days ago;
• Less than 0: lower than N days ago;
• Equal to 0: the same as N days ago.

How to read it

• The unit of MTM is dollars, so the value varies with the stock price level and different stocks cannot be compared directly in size.
• The chart draws a zero axis: MTM above the zero axis means price has risen on net over the last N days, and below it means it has fallen on net.
• To compare across stocks, look at ROC, which expresses the change in relative terms.

Limits

MTM uses only two closing prices, today’s and the one N days ago, so what happens in between does not affect the result; it does not predict the future. Use adjusted prices for the calculation.

This article only explains the calculation and how to read a chart. It is not investment advice.