FOREX Momentum Analysis
Like the RSI, momentum measures the rate of change in trends over a given period. Unlike the RSI, which measures all the rate changes and fluctuations within a given period, momentum allows you to analyze only the rate variations between the start and end of the period studied.
The larger n is, the more the daily fluctuations tend to disappear. When momentum is above zero or its curve is rising, it indicates an uptrend.
Examination of the nine-day momentum shows a clear downward trend. Momentum analysis should not be used as the sole criterion for market entry and exit timing, but in conjunction with other indicators and chart signals.