Abstract:
This paper is a contribution to the application of quantum finance theory. Some of the common
momentum indicators include: the rate of change (or the ROC), the relative strengthindex (or the RSI), the
moving average convergence divergence (or the MACD) and the stochastic indicator. It is noted that many of
the known methods for computing the indicators including those not mentioned here, have mainly concentrated
on the historical stock’s data spanning over weeks and months, and even at that, there is no empirical basis for
most of those methods as they were mere mathematical manipulations and conjecture. Using the model based on
the Schrodinger equation for the harmonic oscillator, we developed a method to compute the velocity and
momentum of stock prices in a stock market. This offered a proven approach that would give financial technical
analysts credible computational method using daily/current stock market data that would improve their quality
of advice to potential investors and interested stakeholders. Some randomly selected equities traded on the
floor of the Nigeria Stock Exchange were used as our case study.
