Momentum Indicators
Measuring the speed of price to spot exhaustion and acceleration.
Lessons
- What Momentum MeasuresNot where price is, but how fast it is getting there — and why speed fades before direction.
- RSI: Overbought & OversoldThe most popular momentum oscillator, what its 30/70 levels mean, and how it misleads in trends.
- MACD: Momentum from Moving AveragesA trend-and-momentum hybrid — the line, the signal, the histogram, decoded.
- Stochastic OscillatorWhere price closes within its recent range — a fast read on momentum turns.
- Divergence: When Price and Momentum DisagreePrice makes a new high but momentum does not — a quiet warning worth heeding.
- The Overbought Trap"Overbought" does not mean sell. In strong trends it can stay overbought for months.