All Concepts

Momentum

Speed and strength of price movement.

What it is

  • Speed and strength of price movement.

How Candle Whisperer uses it

  • Momentum is evaluated as part of the NO_TRADE decision framework.
  • Related conditions: MOMENTUM, EXHAUSTION
  • Often evaluated together with Trend and Volume.

Doctrine Rules

  • Strong momentum overrides pattern signals
  • Momentum divergence warns of potential reversal
  • Fading strong momentum is high-risk

Common Mistakes

  • Underestimating the importance of momentum in trade decisions.

Quick Checks

  • Check: Strong momentum overrides pattern signals
  • Check: Momentum divergence warns of potential reversal
  • Check: Fading strong momentum is high-risk

Related Concepts

Educational only. This is training material, not financial advice or trading signals.

Linked from tags: MOMENTUM, EXHAUSTION