💥Meaning: "Momentum"💥
✅️ Momentum in the crypto world means the price push of a coin — that is, how strong and in what direction the current price movement is, and whether traders support the continuation of the rise or fall.
In other words:
It is the speed of price change + the strength of market participants that drives the coin to continue in the trend (upward or downward).
✅️ How do we understand momentum simply?
✔ If momentum is high upward:
🔶️ It means that buyers are strongly in control.
🔶️ The price is moving up quickly and with clear support.
🔶️ Often, the rise continues as long as the momentum is strong.
✔ If momentum is high downward:
🔶️ It means that sellers are in control.
🔶️ The price is dropping forcefully and quickly.
🔶️ The decline may continue until the momentum weakens.
✔ If momentum is weak:
🔶️ Price movement is slow and hesitant.
🔶️ Neither buyers nor sellers are exerting control.
🔶️ Often the market enters into fluctuations or consolidation.
■Examples of indicators that measure momentum:
🔸️RSI: Measures buying and selling strength.
🔸️MACD: Shows the acceleration of the trend (increase or decrease in momentum).
🔸️Stochastic: Measures the speed of price change.
✅️How do traders use it?
🔸️ To know whether the current trend is strong or weakening.
🔸️ To predict reversals before they happen.
🔸️ To determine entry and exit points more accurately.
■Quick summary:
🔸️Momentum = strength of price movement.
🔸️The stronger the momentum, the higher the likelihood that the trend will continue.
$PTB $LYN $CLO
