fintech-algorithms
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Relative Momentum Index

Install and import#

bash
npm install fintech-algorithms
ts
import { relativeMomentumIndex } from "fintech-algorithms/technical-indicators/momentum/relative-momentum-index";

Signature#

relativeMomentumIndex(input)

An RSI-shaped 0..100 reading built on the change over momentum_lag bars instead of the one-bar change, Wilder-smoothed over period.

Parameters#

NameTypeNotes
inputTopicInputbars is a chronological array of OHLCV rows, each with a non-empty timestamp plus finite open, high, low, close and volume. From parameters this topic reads period (integer >= 2, default 14) for the Wilder smoothing and momentum_lag (integer >= 1, default 5) for the change interval. The preamble also validates fast_period (default 5) and slow_period (default 34) before branching, so a bad value for either throws even though this topic does not use them.

Returns#

TopicResult

series and latest carry one key, value, equal to 100 times the smoothed up-move divided by the sum of the smoothed up- and down-moves. The warm-up prefix stacks the momentum lag on top of the Wilder seed.

Warm-up#

The first momentum_lag + period - 1 bars (18 with the defaults 5 and 14) positions are null. The lagged change is null for the first momentum_lag bars and the Wilder average then needs period consecutive values to seed, so ready_at is 18 on the canonical fixture. Smoothed up- and down-moves that sum to exactly 0 also yield a null.

Errors#

  • When momentum_lag is not an integer >= 1 — throws Error
  • When bars are not strictly increasing by timestamp — throws Error

Complexity: time O(n), space O(n).

Worked example#

executed Captured by running this function on the input its own test provides. Real output of real code — but not asserted against a published figure.

Input#

input
{
  "bars": [
    {
      "timestamp": "2024-01-02",
      "basis": "synthetic-unadjusted",
      "open": 100,
      "high": 101.45,
      "low": 98.695,
      "close": 100,
      "volume": 750000,
      "benchmark": 200
    },
    {
      "timestamp": "2024-01-03",
      "basis": "synthetic-unadjusted",
      "open": 101.49111452,
      "high": 103.38381693,
      "low": 100.05480022,
      "close": 101.78791214,
      "volume": 795117,
      "benchmark": 200.56326135
    },
    {
      "timestamp": "2024-01-04",
      "basis": "synthetic-unadjusted",
      "open": 102.45519048,
      "high": 104.6701838,
      "low": 100.91147007,
      "close": 102.9549389,
      "volume": 840234,
      "benchmark": 201.11020913
    }
  ],
  "parameters": {}
}

Call#

relativeMomentumIndex(input)

Returns#

object with 9 fields: topic_id, title, state, ready, ready_at, series, latest, parameters, …

{
  "topic_id": "D07-F03-A18",
  "title": "Relative Momentum Index",
  "state": "calculated",
  "ready": true,
  "ready_at": 18,
  "series": {
    "value": [null, null, null, null, null, null]
  },
  "latest": {
    "value": 36.68238933579245
  },
  "parameters": {},
  "diagnostics": {
    "causal": true,
    "input_count": 96
  }
}

Diagrams#

Relative Momentum Index — article hero
Relative Momentum Index — concept map
Relative Momentum Index — decision comparison
Relative Momentum Index — worked example

Calculation flow#

Relative Momentum Index calculation flow
flowchart LR
    A["an ordered price or OHLC series, declared lookbacks, smoot"] --> B["Validate order, basis, and finite values"]
    B --> C["Apply the selected Relative Momentum Index convention"]
    C --> D["Emit value, readiness, and diagnostics"]
    D --> E["Interpret descriptively; test outcomes separately"]
    B -->|invalid or insufficient| X["Withhold output with a reason"]
Relative Momentum Index readiness and evidence states
stateDiagram-v2
    [*] --> Waiting
    Waiting --> Ready: enough valid causal observations
    Waiting --> Rejected: malformed or unsupported input
    Ready --> Calculated: selected formula applied
    Calculated --> Interpreted: diagnostic and limitation retained
    Interpreted --> Ready: next observation arrives
    Rejected --> Waiting: corrected input and deterministic reset

How it works#

This page states the contract — how to call it correctly. The article explains the concept: why it works, and where it breaks.

Read the article →

References#

  • TA-Lib function groups — see linked primary or authoritative record
  • TA-Lib C/C++ API — see linked primary or authoritative record
  • TA-Lib maintained source — see linked primary or authoritative record
  • Evidence decision
  • Level 1 evidence map

The rest of the Momentum family#