The Momentum technical indicator measures the amount that a security’s price has changed over a given time period.
There are basically two ways to use the Momentum indicator:
As a market peaks, the Momentum indicator will climb sharply and then fall off - diverging from the continued upward or sideways movement of the price. Similarly, at a market bottom, Momentum will drop sharply and then begin to climb well ahead of prices. Both of these situations result in divergences between the indicator and prices.
Author: MetaQuotes Software Corp.
Momentum Technical Indicator