Trading Momentum: Overbought And Oversold Levels by Martin J. Pring
ARTICLE SYNOPSIS ...This veteran trader and market analyst starts a new series,
this time discussing the basics of momentum trading.
Momentum measures the velocity of a
price move and is a generic term that
describes the oscillators plotted under
the price series of many charts.
The same way that the word fruit
encompasses apples, oranges,
grapes, bananas, and more, momentum
embraces a host of individual
indicators, such as rate of change,
relative strength index (RSI), moving average convergence/
divergence (MACD), and stochastics, as can be seen in Figure 1.
Each indicator has different attributes, but the pri...