Momentum indicators show the strength of a trend from "summary" of Charting and Technical Analysis by Fred McAllen
Momentum indicators serve as a crucial tool in analyzing the strength of a trend in the market. These indicators help traders and investors gauge the momentum behind price movements, providing valuable insights into the potential continuation or reversal of a trend. By measuring the speed and magnitude of price changes, momentum indicators offer a clear picture of whether a trend is gaining or losing momentum. One of the key benefits of using momentum indicators is their ability to confirm the strength of a trend. When a price trend is supported by strong momentum, it is more likely to continue in the same direction. Conversely, a weakening momentum indicates that the trend may be losing steam and could potentially reverse. By monitoring momentum indicators, traders can better assess the sustainability of a trend and make informed decisions about their trading strat...
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