Momentum indicators

Momentum indicators

Indicators used in market analysis to quantify the momentum of upward and downward price movements.

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.
References in periodicals archive ?
Momentum indicators support the mentioned scenario as the MACD could not move above the zero line and the index is moving below its moving averages.
The fund tactically adapts to market conditions, constantly measuring momentum indicators and durable trends that identify specifically how and when its income portfolio should be allocated, either offensively or defensively.
The net change in score came from a decrease in the liquidity, valuation and earnings momentum indicators, offset by an increase in the technical indicators.
Bearish momentum indicators for gold have accelerated, and a sustained break below $1,232 could take gold near $1,180, technical analysts at ScotiaMocatta said.
Both the Stochastic Oscillator and RSI are each suggesting that the GBPUSD is oversold and looking at the historical correlation between these two momentum indicators, the price seems to quickly rebound after approaching the oversold boundaries.
While technical momentum indicators such as the relative strength index (RSI) show the FTSE 100 is in 'overbought' territory, some fund managers see scope for more gains as investors continue to plump for equities over bonds due to better returns.
With the trending and momentum indicators pointing lower, a break below these would extend weakness to test strong support at 1,526.
Meanwhile, momentum indicators show the strength in S&P 500 is starting to decline as well.
While the short-term technical trend and momentum indicators remain positive, we think that ample OPEC spare production capacity is likely to cap the upside.
Momentum indicators determine the strength or weakness of a trend as it progresses over time.
The technical picture remains vulnerable however, with momentum indicators showing continuing to show clear negative divergence as prices advance.
Momentum indicators on the charts point to strong short-term upswings, supported by rising volume and improving sentiment.