Momentum Indicator
What is Momentum Indicator?
·
Momentum
indicators calculate and plot the speed of current price move in relation to
its previous price move.
·
It helps
to understand the strength of a price move.
·
It also
helps in understanding the direction of a price move.
·
Most momentum
indicators are oscillators, which means they tend to oscillate between two boundaries.
·
Because
these are oscillators, they can be used to find short term tops and bottoms.