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Understanding Momentum in Investment Technical Analysis
book

Understanding Momentum in Investment Technical Analysis

by Michael C. Thomsett
June 2019
Intermediate to advanced content levelIntermediate to advanced
146 pages
3h 15m
English
Business Expert Press
Content preview from Understanding Momentum in Investment Technical Analysis

Introduction

The Nature of Momentum

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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Publisher Resources

ISBN: 9781949991635