Momentum MTM, also known as the rate of change (ROC), is a momentum oscillator used in technical analysis to measure the strength or weakness of a security's price movement. Momentum MTM compares the current price of a security to a previous price from a selected period and calculates the percentage change over that time period. The resulting momentum MTM value can be positive or negative, indicating upward or downward momentum in a security's price movement.

The momentum MTM oscillator can be used as a technical indicator to identify potential trend changes or to confirm an existing trend. When the momentum MTM value crosses above or below a zero line, it can signal a shift in momentum and a potential reversal in the trend. Additionally, traders may use momentum MTM to assess overbought or oversold conditions in a security.

The formula for momentum MTM is as follows:

Momentum MTM = (Current Price - Price n periods ago) / Price n periods ago n 100

In this formula, n represents the number of periods selected for calculation. For example, if a trader wants to calculate momentum MTM over a 10-day period, n would be equal to 10. The resulting momentum MTM value can be plotted on a chart alongside the security's price to visualize trends and potential momentum shifts.