Momentum
Technical AnalysisSponsored Content
Curriculum Content
All oscillators are based to some degree on the concept of momentum. As momentum increases the oscillator accelerates in the direction of the movement. As the momentum decreases the oscillator slows in the direction of the movement. Momentum measures the rates of change in the trend.
The actual reading of momentum is based on comparing the latest closing price to the closing price several periods ago. When closing prices are higher a positive value is charted. Prices must rise while the momentum line is positive at an increasing rate, for the momentum line to continue rising. This means the uptrend must be accelerating for the momentum line to rise. Gains must be higher than gains previously to continue the increase in the momentum line. When the line flattens, momentum has slowed, even if price action still moves in the same direction. When the momentum line begins falling, momentum is actively decreasing and price may begin moving in a bearish direction.
When closing prices are lower a negative value is charted. For the momentum line to continuously fall, prices must fall at an increasing rate. The momentum line will only continue to decrease as prices fall faster in a downtrend. Losses must be higher than losses previously to continue the decline. The line flattens when momentum slows, but price can continue moving in the same direction. The line will rise when downwards momentum beings decreasing and turns in a bearish direction.
The amount of days is determined by the setting. Shorter periods are more sensitive to change, making the momentum indicator more volatile. Longer periods are less sensitive to change, smoothing the momentum indicator line.
The crossing of the zero line is often seen as a signal to trade. A cross up indicates a buy when it accompanies an uptrend. A cross down indicates a sell, but only if its accompanied by a downtrend. This is generally a lagging signal, and it must be taken with a trend.
Did we help you? Vote with a Crypto-Donation!
Visit on Steemit!
Support us on Steemit!

Donate Bitcoin
141FSmuHkMSZVsQQtE9GHSPyj6gAonqqWR

Donate Dash
Xr4fdtP78Mh3gnVwAUjjuZRCq3kubaHZ5o

Donate Litecoin
LcrxGsshB2j9SddnZNdLfYMsDqAtw3Dr9v

Donate Iota
LXIVNBVHRYBOHRWNGMBNHOYMT9GBEFTPQMKDUZUYYHGMPXOOEYETMUQZXWXCGWBMTFERLW9LMCKNUDCKAMDOQCNDNZ
Visit on D.Tube!
Support us on D.Tube!

Donate Bitcoin Cash
14NCVeGCZfHf7tiy9N2Yz1mrBNi9m2mQ4S

Donate Ethereum
0xAF7d66B09F34833Ccec1Ed9e4D356D40c09698e5

Donate Ripple
raiZ2rCXLeBTUh2A4voKALZpMxQ88KxZxm

Donate Monero
42byh9AjzB3XXRptSeSfzAGC588HRZgVXAGMay6yYKjjAHinUxdQkxw3Ay1XcziXV86XY57aRqG5kGnJ8LFWmSjmAnUEnYh
International Economic Analysis:
- Major Currency Economic Summaries
- Performance of Major Imports and Exports
- Mandates of Central Banks versus Expectations
- Performance Indexes of Major Economies
- Economically Correlated Currency Projections
- Large Funds Currency Sentiment Readings
- List of Technical Indicators to Look For
- Occasional: Foregin Exchange Technicals Markups
American Markets Analysis:
- Summaries of American Economic Structure
- Performance of Major
- Imports/Exports
- Federal Reserve Mandate versus Expectations
- Performance Indexes of U.S Economy
- Economically Correlated U.S Dollar Projections
- Large Trading Fund Index Sentiment Readings
- Market Wide Earnings Versus Valuations
- Fundamental Ranking of U.S Business Sectors
- Best and Worst Future Consensus Estimates
- Occasional: Firm Fundamental Strength Report
- List of Technicals to Look for While Trading
Storefront
Investment and Finance, Serviced by Amazon
No Results Found
The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.