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Understanding price momentum and its role in trend analysis.
Momentum measures the rate of change in price — not just whether price is going up or down, but how fast. A stock rising $1/day has different momentum than one rising $5/day, even if both are in uptrends.
Key insight: Momentum precedes price. When momentum starts fading, price often follows — but with a lag. This lag creates the divergence signals that are among the most powerful tools in technical analysis.
Momentum is measured by indicators like RSI, MACD, Stochastic, and Rate of Change (ROC). Each measures momentum differently, but they all share the same principle: the speed of price change contains information that price alone doesn't reveal.
Apply this concept in combination with others. No single concept tells the whole story - confluence is key.
The Academy teaches this concept through structured lessons with real chart examples.
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