Glossary Term

Momentum

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Momentum is the rate of change in an asset’s volume or price. It’s essentially the rate at which an underlying asset’s price and volume accelerate, either positively or negatively. Momentum is a highly valued indicator to technical analysts when combined with other indicators, and when it comes along at the right times it can cause drastic trend shifts in an asset’s price. The types of indicators typically used to measure momentum are oscillators, the most popular of which is the Relative Strength Index (RSI).

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What is momentum? A Traders Expert explanation

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