Most traders follow price — candles, trendlines, support/resistance. But there’s another layer that often tells the story before the price moves: momentum.
⸻
🔍 In this post, you’ll learn:
• What momentum really measures
• Why it’s not the same as price direction
• How momentum can signal a shift before the chart confirms it
• Why combining momentum with structure improves timing
⸻
📈 Momentum ≠ Direction
Price can be rising while momentum is fading. That’s often a clue of an upcoming slowdown or reversal — long before the price turns. Similarly, price can be flat, while momentum builds in one direction. That’s tension… and tension leads to moves.
⸻
🔥 Why Momentum Matters:
• It reveals intensity, not just direction
• It can act as a leading indicator — not lagging
• Momentum divergences often hint at hidden accumulation or distribution
• Tracking it helps you avoid late entries or false breakouts
⸻
🔧 Takeaway for traders:
If you’re only watching price, you’re only seeing half the picture.
Momentum shows what’s driving the move, and when that drive starts weakening.
⸻
💬 What’s your favorite momentum indicator? RSI, %R, CCI, or something else?
⸻
🔍 In this post, you’ll learn:
• What momentum really measures
• Why it’s not the same as price direction
• How momentum can signal a shift before the chart confirms it
• Why combining momentum with structure improves timing
⸻
📈 Momentum ≠ Direction
Price can be rising while momentum is fading. That’s often a clue of an upcoming slowdown or reversal — long before the price turns. Similarly, price can be flat, while momentum builds in one direction. That’s tension… and tension leads to moves.
⸻
🔥 Why Momentum Matters:
• It reveals intensity, not just direction
• It can act as a leading indicator — not lagging
• Momentum divergences often hint at hidden accumulation or distribution
• Tracking it helps you avoid late entries or false breakouts
⸻
🔧 Takeaway for traders:
If you’re only watching price, you’re only seeing half the picture.
Momentum shows what’s driving the move, and when that drive starts weakening.
⸻
💬 What’s your favorite momentum indicator? RSI, %R, CCI, or something else?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.