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What Is Momentum – And Why It’s Not Just a Trend Indicator

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Most traders follow price — candles, trendlines, support/resistance. But there’s another layer that often tells the story before the price moves: momentum.



🔍 In this post, you’ll learn:
• What momentum really measures
• Why it’s not the same as price direction
• How momentum can signal a shift before the chart confirms it
• Why combining momentum with structure improves timing



📈 Momentum ≠ Direction
Price can be rising while momentum is fading. That’s often a clue of an upcoming slowdown or reversal — long before the price turns. Similarly, price can be flat, while momentum builds in one direction. That’s tension… and tension leads to moves.



🔥 Why Momentum Matters:
• It reveals intensity, not just direction
• It can act as a leading indicator — not lagging
• Momentum divergences often hint at hidden accumulation or distribution
• Tracking it helps you avoid late entries or false breakouts



🔧 Takeaway for traders:
If you’re only watching price, you’re only seeing half the picture.
Momentum shows what’s driving the move, and when that drive starts weakening.



💬 What’s your favorite momentum indicator? RSI, %R, CCI, or something else?

Penafian

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