Momentum is the rate of change of an asset’s price. We use momentum to measure how strong buyers/sellers are, and whether they’re more likely to get stronger/weaker in the future. From there we can decide whether we’re more likely to continue in the same direction or reverse.
Using momentum, I was able to determine the exact reversal point on the S&P500 recently, which is up over 100 points since there.
Momentum is dangerously accurate when used properly. Most have no idea how to use it. In this post, I’ll show you exactly how you can measure it and use it every day to take clean, highly profitable trades: