Momentum is the key feature for movement. The same is true for trading.
It’s easier to push a moving wagon than to make it start. The same is true for trading.
Momentum traders need tools to understand if an asset is likely to start to move, continue it’s move or reverse and go the opposite direction.
Momentum indicators are technical analysis tools to help traders understand if price has the energy to move (hence momentum). They often are computed using price movement, closing price and current price.
The most popular momentum indicators are RSI, Stochastic Oscillator, MACD Indicator and many more are available (more than 20 different indicators).
Each of these technical indicators are very easy to add to your price chart using TradingView. As you likely noticed, most of the price charts visible on our site are taken from this tool.
Click here if you want to test TradingView for free!
Momentum indicators can be used in 2 principal ways:
Keep in mind that although very powerful, as everything else in technical analysis, it remains based on probabilities and can create false signals.
Momentum indicators allow traders to better understand the speed at which the price of a given security changes. They are a great hint to understand the strength of price movements.
What are the current market trends?
Is it a strong trend or will the current trend likely to reverse?
You need good tools to figure out!
Here, you’ll find more than 20 momentum indicators described here. Each of them can greatly integrate with chart patterns so you can increase your chance of a trade going your way.
Want to go into the details of a specific volume indicator? You’re at the right place!
Feel free to discover the detailed article for each and every volume indicator right below :
The Commodity Channel Index is a momentum-based indicator. It helps traders determine when an investment vehicle gets to a condition of being overbought or oversold. This information makes it possible … Read more
The Ultimate Oscillator is a momentum indicator. It integrates three various times within one value. It directs traders on how to better time their entry and exits in the market. … Read more
The Coppock Curve indicatoris a momentum indicator. It helps to identify long-term trading opportunities in the stock market. The Zero-Line functions as a trade-trigger. It gives the buying signal when … Read more
The Money Flow Index (MFI) indicator is a momentum indicator. When MFI is above 80, the market is considered overbought. When MFI is below 20, the market is considered oversold. … Read more
The legendary chartist, Bill Williams created the Awesome Oscillator indicator. He showed it as the best momentum indicator that is as simple as it is elegant. Traders use it to … Read more
The Williams %R indicator oscillates between 0 and -100. When its value is above -20, it sends an overbought signal. When its value is below -80, it sends an oversold … Read more
Ease of movement (EMV) momentum indicator shows the link between the rate of change in the price of an asset and its volume. It is best to use it for … Read more
The oscillator helps trader take advantage of both momentum indicators to make another indicator. The new indicator is more sensitive and synchronises well to the historical performance of a particular … Read more
The Rate of Change (RoC) indicator is an unbounded momentum oscillator. Three main states are possible: A rising RoC above zero typically confirms an uptrend A falling RoC below zero … Read more
The Know Sure Thing indicator, or KST, is a momentum oscillator. It takes into account four time periods (and not a single one as other indicators). It gives traders a bullish … Read more
We research technical analysis patterns so you know exactly what works well for your favorite markets.
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