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Technical Analysisbeginner
MOMENTUM
DIVERGENCE
MOVING AVERAGE
RETRACEMENT
REVERSAL

Momentum

The rate of change of price — how fast and with what force price is moving in a given direction.

Momentum describes whether price is accelerating or decelerating. High momentum means price is covering ground quickly; fading momentum is often the first warning that a move is losing conviction before price itself reverses.

Momentum is measured with oscillators (RSI, MACD, Rate of Change) and observed directly in price — wide-range candles with closes near highs/lows indicate strong momentum; small-body candles with large wicks indicate it is fading. Divergence between price and a momentum indicator is one of the most-watched signals in technical analysis.

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