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  • Beginner
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  1. Beginner
    Early Stages for Beginners
    8 Topics
  2. Forex Terminology
    11 Topics
  3. Margin & Leverage
    2 Topics
  4. Personal Psychology Questions
    2 Topics
  5. Psychology for Beginners
    7 Topics
  6. Intermediate
    Identifying Scams
    2 Topics
  7. Brokers for Beginners
    5 Topics
  8. Technical Analysis
    13 Topics
  9. Market Structure
    5 Topics
  10. Completion
    Risk Management for Beginners
    8 Topics
  11. Fundamental Analysis
    9 Topics
  12. Advanced
    Using Indicators
    6 Topics
  13. Technical Analysis (Part 2)
    8 Topics

Momentum Indicators in Forex Trading

Though I’m not a big fan of using indicators, they can be beneficial to some traders. Indicators are special chart tools that may help in obtaining better understanding of price action when used correctly to enhance trading decisions. Keep in mind that indicators lag and they should only be used as a confluence and not the sole source of confirmation. 

There are four main types of technical indicators, which includes:

  • Momentum indicators

  • Trend indicators

  • Volume indicators

  • Volatility indicators

Momentum indicators, also called oscillators, assess the strength or weakness of a currency pair’s movement, indicating how strong an existing trend is and whether a trend reversal is just around the corner.

That being said, let’s get into the four most popular momentum indicators!