Momentum indicators, explained for Indian traders
Momentum indicators measure the speed and strength of price movement — how fast a market is rising or falling, and whether that move is accelerating or fading. They are the tools traders use to spot overbought and oversold conditions, divergences and shifts in trend before price confirms them.
What are momentum indicators? Momentum indicators are technical tools that measure the rate of change of price to gauge the strength behind a move. They help traders identify overbought/oversold levels, momentum divergence and potential reversals — the most popular being RSI, MACD and the Stochastic Oscillator.
Relative Strength Index RSI
MomentumThe RSI is a momentum oscillator that measures the speed and size of recent price changes on a 0–100 scale, flagging a market as overbought above 70 …
Moving Average Convergence Divergence MACD
MomentumMACD is a trend-following momentum indicator that plots the difference between a fast and a slow EMA, with a signal line and a histogram, to reveal s…
Stochastic Oscillator Stoch
MomentumThe Stochastic Oscillator is a momentum indicator that shows where the current close sits within its recent high-low range on a 0–100 scale, flagging…
Stochastic RSI StochRSI
MomentumThe Stochastic RSI applies the Stochastic formula to RSI values instead of price, producing a highly sensitive 0–1 (or 0–100) oscillator that reaches…
Commodity Channel Index CCI
MomentumThe Commodity Channel Index measures how far the current price has deviated from its statistical mean, oscillating around zero with ±100 as the usual…
Williams %R %R
MomentumWilliams %R is a momentum oscillator that shows where the close sits within the recent high-low range on a −100 to 0 scale, flagging overbought above…
Momentum Indicator MOM
MomentumThe Momentum indicator measures the rate of price change by subtracting the price N periods ago from the current price, oscillating around a zero lin…
Rate of Change ROC
MomentumThe Rate of Change measures the percentage change in price over N periods, oscillating around a zero line to show the speed and direction of momentum…
True Strength Index TSI
MomentumThe True Strength Index is a double-smoothed momentum oscillator that filters price-change noise to show clear trend direction and momentum, oscillat…