Momentum And Relative
Last month, we examined the theory of price momentum. This
time, we’ll look at two common and popular indicators based
on this theory, and how they can be used to enter and exit a
"Momentum oscillator” is a generic
term used to refer to many different
indicators, two of which
are the relative strength index
(RSI) and momentum indicators.
Since J. Welles Wilder presented
price momentum and the RSI in
his classic New Concepts In
Trading Systems, both indicators
have become popular technical
tools, and a discussion of
each can be found in most current
works on technical analysis.
Both indicators can be used to enter and exit the market.