http://www.marketskillbuilder.com/trading.htm
Momentum
Up and down-moves can be fast ("impulsive") or slow ("corrective" or "drifting") in nature (or in between). Note: The most important aspect of "Momentum" is not any absolute measurement of its value, but whether it is constant or changing. the key questions (to be answered from direct observation of the price-charts) are:
- Is the current price-move speeding up (in which case you want to stay with / get into it) or slowing down (in which case, consider taking a position against it)
- Is the current price-move faster or slower than the immediately preceding move in the opposite direction (expect the on-going trend to be in the direction of the faster of the two).
