Traders rely on an array of different signals, and among these are momentum oscillators. However, even while knowing what an oscillator is and what it shows, you might not necessarily know how to use an oscillator to time trades. This requires identification of turning points, confirmation, and determining the strength of price movement.
Momentum oscillators are measurements of the rate and strength of change in price, but not the direction of price movement. This points to a feature of momentum that some traders overlook: As a current trend accelerates, so does momentum (as measured by the oscillator). As the trend begins to weaken, it is often first seen in a slowing of momentum. In this regard, momentum ...
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