Momentum Indicator

Technical Analysis

Definition

Technical analysis tools that measure the rate of change in price movements, helping identify the strength of trends and potential reversal points by analyzing the speed and magnitude of price changes.

Key Points

  • Measures speed of price changes
  • Helps identify trend strength
  • Can signal overbought/oversold conditions

Examples

RSI, MACD, Stochastic as momentum tools
Momentum divergences warn of trend weakness