Momentum indicators

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Momentum indicators

Indicators used in market analysis to quantify the momentum of upward and downward price movements.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Momentum Indicators

Measures of a security's or market's movements taking into account both price changes and trading volume. Momentum indicators are not exact measurements, but subjective calculations of market sentiment taking those two factors into account. Momentum indicators may be positive or negative, and they may be fast or slow. For example, if an index rises quickly on heavy trading volume, it is said to have a great deal of market momentum. However, if it rises only slowly on heavy trading volume, it has less market momentum.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Thanks to the recent gains, the 14-day RSI, a momentum indicator, is approaching overbought levels.
The moving average convergence-divergence momentum indicator has declined bearishly below the signal line and zero.
In technical analysis, ADX is used to determine when price is trending strongly or when the trend is your friend while RSI is a momentum indicator used to identify overbought or oversold conditions.
Users can sign up for a free two-week trial that features unlimited stock analyses, 10 Premium WatchLists ranked by proprietary indicators, leading-edge market guidance, a daily market video, enhanced graphs and proprietary VectorVest's data, including momentum indicator Relative Timing and Buy-Sell-Hold recommendations.
Enhanced graphs include candlestick pricing and VectorVest's proprietary momentum indicator Relative Timing, and VectorVest Buy-Sell-Hold recommendations.
DWTR implements an unemotional approach, focusing on relative strength, a momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset, as a longer term strategy that may help reduce potential turnover, but is also adaptive enough to rotate a portfolio on a monthly basis as the market dictates.
The FTSE 100's slide to its lowest closing level in 2014 on Thursday left it looking more "oversold" on its 14-day Relative Strength Index, a technical momentum indicator, than it has in more than three years.
The first indicator is "level of activity" and the second is "momentum." (6) These two indicators jointly explain 81 percent of the variability of the 24 labor market variables, with the activity indicator and momentum indicator explaining 58 percent and 23 percent, respectively.
Resistance could come into play at this level, he said, and the 14-day relative strength index (RSI), a momentum indicator, is moving back up towards overbought territory.
"The seasonally adjusted three-month moving average annualized momentum indicator also points to ebbing of inflationary pressures.
Abu Dhabi's benchmark, which closed at 2 450 on Wednesday, may target 2 462, with a bullish divergence on the relative strength index, a commonly used price momentum indicator.