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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.
Forex market has its driving forces. Such forces are participants of market. For clarity, it is accepted to divide them into several types: bulls, bears, pigs, rabbits, hogs, lambs. In this zoo, driving forces are exactly bulls and bears. Their clear intentions and determination can greatly influence currency rates. This terminology was adopted from stock market, where emotions play not the last role in movement of quotes, thus, analogy with animals and their typical behaviour provides a clear idea on psychology of market participant.
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