Forex encyclopedia

Random article: Momentum Trading System
Momentum indicator measures speed of price's decline and growth. If indicator starts growing, it says that tendency accumulates its speed. If momentum curve flattens out, it says that the growth fixed by previous Close prices is similar to the growth noted a certain number of periods before. If curve moves to zero, the growth continues, but its speed falls down and loses pace. Upon crossing zero point, the curve tells about short-term dropdown of price; if decline of the indicator continues, market will descend.
Popular article: Rate of Change (ROC)
ROC indicator relates to anticipating figures, however, in terms of logic, if price factor is removed from calculation, the indicator stops operation and anticipation does not work as well. Still the point of anticipation is the following: when trend starts losing its force and slows down, the indicator's values begin pivoting, whereas price still can continue its movement along trend. In other words, as many other oscillators, ROC shows divergence and convergence. Of course, many things depend on parameters chosen by trader.
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