Investor Glossary-momentum indicatorInvestor Glossary-momentum indicatorInvestor Glossary-momentum indicatorInvestor Glossary-momentum indicatorInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Momentum Indicator

WordPress
The HTML to link to this page
 

A momentum indicator is a technical analysis indicator that attempts to quantify the momentum of upward and downward price movements. Put another way, a momentum indicator tries to predict future market trends through the evaluation of recent price and volume data. Since momentum can be measured in different ways, one momentum indicator may use a different method than another momentum indicator. Typically, a momentum indicator compares a security's current price to the price a number of periods ago, representing a rate of change. One momentum indicator may express momentum as a ratio using the high, low and close values on various days. Some examples of a momentum indicator include the Relative Strength Index, Commodity Channel Index, Moving Average Convergence Divergence, and stochastics. A momentum indicator essentially allows a trader or analyst to see where the current price stands and to subsequently determine what strategy to use in trading.



Rate this momentum indicator definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: required rate of return, ex-dividend, Zero Cost Collar, debt service coverage, quality assurance, class C shares, LIBOR, command economy, stock market close, per diem, VIX, reverse mortgage, 401a, current ratio, implied volatility, labor relations, stock split, deferred tax, APR, cancelled check, 1035 exchange, phantom income, deferred revenue, liquidity ratio, minority interest, in escrow, real GDP, irrevocable trust, average price per share, covered put, inflation, open position, 1031 exchange, Key Rate Duration, margin rate, EBITDA, risk management, retained earnings, 144a, wholly-owned subsidiary, FTSE, dividends payable, limit order, ex-dividend date, balance sheet, FICO score, annual return, option premium, diluted share


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use