Momentum Changes Direction Before Price

When momentum dies, does price immediately follow? Using the analogy of a rocket in flight, John of DayTradingRadio.com suggests that even after momentum drops off, price can actually continue course for a short time afterwards.

In other words, “momentum always changes direction before price.” John also uses a graph to reinforce this concept, pointing out the divergence between price and momentum.

Learn more in this 1-minute video from the webinar One Trade Business Plan.

Interested in similar videos? Check out Volume as a Leading Indicator & Buy & Sell Signals.