Momentum

Momentum
Momentum indicates the whole rate of alteration in the cost of a particular asset. It is measured by just taking the trend line’s slope which maintains a record of the cost levels of a particular asset with time. Dealers generally take itas the means of market volume. If the costs are rapidly changing in the market, it is likely that several dealers are purchasing and selling an asset to force the cost change in any of the direction. If the momentum reaches a high position, an asset is over purchased and on the contrary if the momentum reaches a low level. An asset is said to be over sold. Buying signals are created when the momentum reaches a low level and suddenly advances towards the back across the line zero. Dealers regard this as a popular indicator of cost behavior of a particular asset.