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Trading glossary · indicators

momentum

How strongly and quickly price is moving in one direction, like how fast a ball is rolling.

The fuller meaning

The speed and strength of price change. Momentum tools such as RSI, MACD and the stochastic compare recent moves; fading momentum, shown by divergence or shrinking MACD bars, can warn of a pause, while strong momentum can keep oscillators overbought or oversold for a long time.

momentum.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence