Momentum Reversal
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A momentum reversal is when the momentum indicator reverses from bullish to bearish or from bearish to bullish. | ||
Additional Comments:
A momentum indicator that has two lines, like a stochastic or a relative strength index, makes a momentum reversal when the fast line crosses above or below the slow line. The fast line in most two-line indicators is usually the raw data; the slow line is usually a moving average of the fast line. When the fast line crosses the slow line the momentum trend is likely reversing.
A momentum crossover is similar to a moving average crossover except the momentum crossover is of the indicator values and not the price data itself. A momentum reversal for some indicators may be signaled by the momentum lines crossing above or below the oversold (OS) or overbought (OB) zones, if the indicator is the type with OS and OB zones. |
Related Terms: | ||
Bearish Reversal When momentum changes from a bullish to a bearish trend. With two-line indicators, when the fast ... Bullish Reversal When momentum changes from a bearish to a bullish trend. With two-line indicators, when the fast ... Bear Momentum When a momentum indicator is negative. In a two-line indicator, the fast line is below the ... |
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