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Forex indicators What are momentum indicators?
avatar Loshad
Question by: ProcessR - 13 Dec 2017, 15:39:35
What are momentum indicators?
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Answers (1)
avatar user 12903
Answer by: Alex - 29 Mar 2018, 10:05:02

It is an oscillating technical indicator that is designed to gauge how strong price movements of a currency pair are in a certain period of time. The Momentum belongs to leading indicators. When the indicator touches a bottom, reverses and goes upwards, a buy signal is formed. A sell signal appears when the indicator surges to a top and moves downwards. If the Momentum shows extremums, the current trend is likely to continue. If the gauge jumps sharply while declining amid rising or steady prices, the market is near its high. The main disadvantage of the indicator is the high instability of its results.

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