   
|
|
Momentum Indicator
|
| FYI - For 2011, Dow up, Dogs of the Dow up more (double digits) |
| |
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...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: inflation, FICO score, EBITDA, labor relations, option premium, 1035 exchange, 144a, deferred revenue, limit order, balance sheet, ex-dividend date, dividends payable, command economy, current ratio, phantom income, required rate of return, average price per share, real GDP, FTSE, stock split, deferred tax, diluted share, margin rate, class C shares, debt service coverage, minority interest, open position, annual return, ex-dividend, 401a, risk management, reverse mortgage, covered put, in escrow, LIBOR, implied volatility, wholly-owned subsidiary, irrevocable trust, quality assurance, stock market close, liquidity ratio, cancelled check, 1031 exchange, APR, Key Rate Duration, Zero Cost Collar, per diem, retained earnings, VIX
|
|
| |