Category: 1. Momentum indicators

What is the ROC indicator and how to calculate it? The Rate of Change indicator is a momentum oscillator. Traders use it in their technical analysis tool belt. It calculates the change in price percentage of a financial asset between periods. The indicator calculates the change percentage by taking the current price and comparing it to a…

What does the Know Sure Thing indicator tell traders? The Know Sure Thing indicator serves multiple purposes such as it gives bearish and bullish signals. The presence of Know Sure Thing above the signal line means the bullish trend. The presence of the Know Sure Thing indicates the bearish trend in the market. Traders also…

What is the Chaikin Money Flow indicator? Chaikin money flow (CMF) is a technical analysis tool which helps to measure money flow volume (MFV) over a particular time. MFV is a metric which measures the buying and selling pressure of a security for single time. The CMF then combine money flow volume over a user defined look-back time.  The…

What is the Momentum indicator? Momentum indicator is an oscillator that shows the speed or strength of a price movement. The indicator compares the most current price to a previously determined price and measures the velocity with which price changes. The momentum indicator is another member of the oscillator family of technical signal indicators. The…

What is the MACD indicator? Gerald Appel created the Moving Average Convergence Divergence (MACD) indicator in the late 1970s. The indicator is one of the simplest and most efficient momentum indicators out there. The MACD turns two indicators, moving averages, into a momentum oscillator. It does so by subtracting the longer moving average from a short one.…

What is the Stochastic indicator? The Stochastic Oscillator is a momentum indicator A stochastic oscillator is a momentum indicator that compares a specific closing price of a security or trade to a range of its prices over a certain period. Traders can reduce the sensitivity of the oscillator to market movements by adjusting that time or by taking…

What is the Relative Strength Index indicator? Relative strength index (RSI) is a popular indicator. The technical analyst named J. Welles Wilder developed this indicator and introduced it in his 1978 book, “New Concepts in Technical Trading Systems”. It aids traders to evaluate the strength of the current market. It is similar to Stochastic because it detects…

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…

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…