Momentum
This indictor is used to analysis how an instrument’s price changes over time, and the speed at which it changes at. When an instrument “gains momentum” it means it is goes in one direction. The above methods are lagging indicators, however the indicator can be used as a leading one by assuming that when price increases rapidly then this is the market top (i.e. the trend will change), and where the price declines quickly then it has reached a market bottom (i.e. time to buy). This is, of course, not always the case. Calculation
Signals
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