How Do You Measure Stock Momentum In Technical Analysis?
Stock momentum is measured with the application of indicators(sometimes also called momentum indicators) to the price volume charts of the selected stocks and as an adjunct to them. The moving average indicators (whether simple, moving or exponential) can be applied directly to the price chart of the stock under study; while momentum indicators like the RSI, ROC, MACD and a 150 other such indicators are to be applied as adjuncts to the price volume charts. The decision to buy, hold or sell a stock would depend on the interpretation of the appropriate signals ascertained from a study and analysis of the above mentioned charts. As an investor you would probably appreciate that fundamental analysis would be of equal if not more importance with regard to not only stock selection but also the decisions pertaining to buying, holding or selling the same. The cynics often refer to technical analysis as “windmills of the mind”; which is true to the extent of the lack of required knowledge on th
