Individual Momentum Indicators

So far you have seen that momentum measures the velocity of a price movement. It is a generic term. Just as the word fruit encompasses oranges, bananas, apples or pears. momentum embraces a host of individual indicators such as rate of change, RSI, MACD and stochastics.

Although the principles of interpretation apply to all of them, each indicator has different attributes. You shall learn later, for instance, that RSI lends itself to trend line construction. So does the stochastics, but that is not how it is normally interpreted.

Now we will move on to examine the following momentum indicators separately:

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