Momentum – Speed & Acceleration

In this article will get into the Momentum – Speed & Acceleration of the price direction.

Table of Contents

Momentum

Trend Strength Meter

Momentum – Up Swing

Speed – Up Swing

The slope of a straight line represents the speed of price – the rate of change of price per unit time.
A more shallow line (in blue) represents less price increase for the same period of time as the steeper line (in red). The blue line therefore represents less speed than red.
The blue line shows less bullish momentum than the red line.
The blue line shows bullish weakness when compared with the red line.
The red line shows bullish strength when compared with the blue line.

Acceleration – Up Swing

The slope of a curved line represents acceleration or deceleration – the rate of change of speed.
Increasing slope (the blue line) shows increasing speed. Momentum within this price swing is increasing, showing increasing bullish strength.
Decreasing slope (the red line) shows decreasing speed. Momentum within this price swing is decreasing, showing weakness developing in the price swing.

Momentum – Down Swing

Speed – Down Swing

Look first at the straight lines on the above diagram.
A more shallow line (in blue) represents less price decrease for the same period of time as the steeper line (in red). The blue line therefore represents less speed than red.
The blue line shows less bearish momentum than the red line.
The blue line shows bearish weakness when compared with the red line.
The red line shows bearish strength when compared with the blue line.

Acceleration – Down Swing

The slope of a curved line represents acceleration or deceleration – the rate of change of speed.
Increasing slope (the blue line) shows increasing speed. Momentum within this price swing is increasing, showing increasing bearish strength.
Decreasing slope (the red line) shows decreasing speed. Momentum within this price swing is decreasing, showing weakness developing in the price swing.

Momentum – Speed & Acceleration

Momentum Comparison – Same Direction Swings

Momentum Comparisons – Opposite Direction Swings

Momentum Comparisons – Acceleration

Momentum Comparisons – Deceleration

Momentum Comparisons – Climactic Move

LTF – Momentum Key Points

Not every price swing will provide useful information through analysis of momentum.
However we monitor momentum as price moves in order to note any significant changes.
These may display via a change in speed from one swing to another (changing slope), or a change in speed within one price swing (acceleration or deceleration).
1. Compare the momentum of the current price swing with the momentum of the previous price swing in the same direction?
2. Compare the momentum of the current price swing with the momentum of the previous price swing in the opposite direction?
3. Is the current price accelerating or decelerating?

In next article we are learning Fibonacci Retracement which is helpful for trend strength.

Momentum – Speed & Acceleration ​

Momentum ​

Trend Strength Meter ​

Momentum – Up Swing ​

Speed – Up Swing ​

Acceleration – Up Swing ​

Momentum – Down Swing ​

Speed – Down Swing ​

Acceleration – Down Swing ​

Momentum – Speed & Acceleration ​

Momentum Comparison – Same Direction Swings ​

Momentum Comparisons – Opposite Direction Swings ​

Momentum Comparisons – Acceleration ​

Momentum Comparisons – Deceleration ​

Momentum Comparisons – Climactic Move ​

LTF – Momentum Key Points ​

Momentum – Speed & Acceleration

Momentum

Trend Strength Meter

Momentum – Up Swing

Speed – Up Swing

Acceleration – Up Swing

Momentum – Down Swing

Speed – Down Swing

Acceleration – Down Swing

Momentum – Speed & Acceleration

Momentum Comparison – Same Direction Swings

Momentum Comparisons – Opposite Direction Swings

Momentum Comparisons – Acceleration

Momentum Comparisons – Deceleration

Momentum Comparisons – Climactic Move

LTF – Momentum Key Points