What Is Momentum in Trading?

Momentum is a key concept in trading that measures the speed of price movements rather than their direction. In this video, Indy Kaytor explains how understanding momentum can enhance your trading strategies and clarify the use of momentum indicators.



- Momentum is defined as speed, not direction, in price movements.

- Strong momentum indicates aggressive price action with large candles and minimal hesitation.

- Weak momentum shows slower price movements with smaller candles and more pullbacks.

- Momentum doesn't wait for price to reverse; it slows down first, indicating a potential shift.

- Traders use momentum oscillators like RSI, MACD, and Stochastic to measure acceleration.

- Understanding momentum helps in interpreting indicators as context rather than direct signals.

- The 50 level on momentum indicators represents a balance point between bullish and bearish pressure.

- Recognizing the difference between momentum and trend can lead to better trading decisions.



momentum trading, trading indicators, price action analysis, RSI, MACD, Stochastic, trading strategies, market analysis, Not financial advice.