What Are Momentum Indicators & How To Trade Them

Momentum Indicators

Momentum indicators are a type of technical indicator that can be used to help try and determine an asset’s price or weakness. What are the Momentum indicators? In Physics, the term Momentum refers to a moving object. Similarly, in financial markets, Momentum is the movement of an asset’s price. It measures upward or downward price fluctuations. Most of the indicators that measure Momentum use specific values to suggest an overbought or oversold condition. When the asset is overbought, this means there is an intense buying pressure and signals a price decline. On the other hand, when the asset is oversold, …READ MORE