Momentum
What it shows
Price momentum measures the pace and strength of price change over time, indicating whether a move is accelerating or losing energy.
How to read it
Look for divergence: when price rises while momentum fades, a turning point has historically approached. Momentum best confirms other short-term indicators (RSI, MACD).
Parameters
- Price momentum strength
- Positive and rising momentum = the trend is strengthening; fading = the move is losing energy.
- Positive reading: Strong, positive momentum is historically a healthy continuation of an uptrend.
- Negative reading: Negative or sharply fading momentum is historically an exhausting move or downward pressure.
- Neutral reading: Momentum near zero means consolidation and no clear direction.
Example
The 30-day price change is -17.7%, meaning momentum is bearish short-term, but within the wider cycle this has been a trend correction. Strongly positive momentum (e.g. +30% in a month) has historically signaled overheating; a change near zero is consolidation.