How to Use Momentum Indicators

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How to use the data table is explained clearly below. Please refer to the section beneath the table for details.

How to Use Momentum Indicators

This page explains how to read and interpret the Momentum Indicators table. Momentum indicators help assess the strength, speed, and sustainability of price movement. Each row represents one stock for one trading day.


Understanding Each Column

TICKER

The stock symbol used on the exchange. Each ticker represents a specific listed company.

Date

The trading date for which the momentum indicators are calculated.

Close

The closing price of the stock for the day.

  • All momentum indicators are calculated using closing prices
  • Acts as the reference price for interpretation

RSI_14 (Relative Strength Index – 14 period)

Measures the speed and magnitude of recent price changes on a scale of 0 to 100.

  • Above 70: Overbought zone
  • Below 30: Oversold zone
  • Between 40–60: Neutral to trending zone

RSI_Trend

Indicates the current directional bias of RSI.

  • Rising: Momentum is improving
  • Falling: Momentum is weakening

MACD_Histogram

Shows the difference between the MACD line and its signal line.

  • Positive value: Bullish momentum
  • Negative value: Bearish momentum
  • Increasing value: Strengthening trend

Stoch_%K (Stochastic %K)

Measures the current price relative to its recent trading range.

  • Above 80: Overbought zone
  • Below 20: Oversold zone
  • Fast-moving indicator

Stoch_%D (Stochastic %D)

A smoothed average of Stochastic %K.

  • Used to confirm %K signals
  • Crossovers between %K and %D can indicate momentum shifts

ROC_14 (Rate of Change – 14 period)

Measures the percentage change in price compared to 14 periods ago.

  • Positive value: Price gaining momentum
  • Negative value: Price losing momentum

CCI_14 (Commodity Channel Index – 14 period)

Measures how far price has deviated from its average.

  • Above +100: Strong bullish momentum
  • Below -100: Strong bearish momentum
  • Between -100 and +100: Range-bound behavior

MFI_14 (Money Flow Index – 14 period)

Volume-weighted momentum indicator combining price and volume.

  • Above 80: Overbought with high volume
  • Below 20: Oversold with low volume
  • Confirms price moves using volume

ADX_14 (Average Directional Index – 14 period)

Measures the strength of a trend, not its direction.

  • Below 20: Weak or no trend
  • 20–25: Trend starting
  • Above 25: Strong trend
  • Above 40: Very strong trend

How to Read Momentum Indicators Together

Momentum indicators should be read as a group, not in isolation.

  • Rising RSI + positive MACD Histogram suggests strengthening momentum
  • High Stochastic values confirm strong short-term momentum
  • Positive ROC supports price acceleration
  • ADX confirms whether the trend is strong or weak

Important Notes

  • Momentum indicators measure strength, not certainty
  • Overbought does not always mean price will fall
  • Oversold does not always mean price will rise
  • Always combine momentum indicators with trend and price structure

Disclaimer: This information is for educational and analytical purposes only and should not be considered trading or investment advice.


Data Update Frequency

Momentum indicators are calculated and updated after market hours for each trading day.


Summary

Momentum indicators help identify the strength and sustainability of price moves. They are most effective when used alongside trend indicators, support and resistance, and overall market context.

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