Momentum indicator can be used as a trend-following oscillator similar to the MACD. We can buy when the indicator bottoms and turns up, and sell when the indicator peaks and turns down.

In our Java Charting System, the closing price in n periods ago is defaulted as 10 days ago. You can also do your favorite adjustment in the appropriate boxes as shown below.

If the Momentum indicator reaches extremely high or low values (relative to its historical values), you should assume that the current trend is likely to continue. For example, if the Momentum indicator reaches extremely high values and then turns down, you should assume that prices would probably go still higher.