/**
* Momentum (MOM) Indicator
* Measures the speed of price change
*/
export interface MomentumData {
momentum: number | null
signal: 'bullish' | 'bearish' | 'neutral' | null
}
export function calculateMomentum(closes: number[], period: number = 14): MomentumData {
// Minimum 3 data points required
if (closes.length < 3) {
return {
momentum: null,
signal: null,
}
}
// Use adaptive period
const effectivePeriod = Math.min(period, closes.length - 1)
const currentClose = closes[closes.length - 1]
const pastClose = closes[closes.length - effectivePeriod - 1] ?? closes[0]
if (!pastClose) {
return {
momentum: null,
signal: null,
}
}
const momentum = currentClose - pastClose
// Determine signal
let signal: 'bullish' | 'bearish' | 'neutral' | null = null
if (momentum > 0) signal = 'bullish'
else if (momentum < 0) signal = 'bearish'
else signal = 'neutral'
return {
momentum,
signal,
}
}
