The Momentum technical indicator measures the price has changed over a given time span. It attempts to measure the momentum behind price movements for the underlying currency pair over some period of time.

How to interpret:

There are basically 2 ways to use the Momentum indicator:

  • As trend-following oscillator

Buy when Momentum bottoms and turns up. Sell when Momentum peaks and turns down. A short-term moving average applied to the indicator will help to determine its turning points. If Momentum reaches extremely high or low values, the odds are that the current trend will continue. If Momentum reaches extremely high values and then turns down, assume that prices will probably keep going higher. Enter the market only after prices confirm the signal generated by the indicator – in this case, wait for the prices to start falling and then sell.

  • As a leading indicator

Often Momentum begins to turn before the price does. When Momentum is diverging from the price, it may be regarded as a leading indicator pointing at the potential top (when Momentum is falling while the prices are going up) or bottom (when Momentum is increasing while the prices are going down).

The advantage of the indicator is that it is ahead of a price.

AUDUSDDaily momentum.png

Latest news

Key crypto assets leap

On Friday, Bitcoin as well as key crypto assets managed to ascend, thus finding themselves on track for back-to-back winning trading marathons…

S&P and Dow demonstrate record maximums

On Friday, the S&P 500 along with the Dow demonstrated record maximums for the second straight day…

American business activity declines to 17-month minimum

In September, American private sector activity speeded down to a 17-month minimum, as follows from Friday’s survey data…

Deposit with your local payment systems


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera