Do Momentum Indicators Follow Trends? by Clive Roffey, Ph.D.
ARTICLE SYNOPSIS ...Do Momentum Indicators Follow Trends? by Clive Roffey, Ph.D.
Do momentum indicators follow trends, or
are they independent of them?
The stochastic oscillator, relative
strength index (RSI), rate
of change (ROC), and moving
divergence (MACD) are
some of the most commonly
used indicators. It's not surprising to find
traders lumping them all together into the
generic category of "momentum indicatorsY´."
Although each indicator is recognized as having
its own distinctive characteristics, it is
often assumed, misleadingly, that they can be
interpreted in a similar fashion.