One of the main goals of every trader using technical analysis is to measure the strength of an asset's momentum and the likelihood that it will continue. This is the primary purpose of indicators such as the moving average convergence divergence (MACD), stochastics, price rate of change (ROC) and the relative strength index (RSI). (To learn more about these indicators, see the series Getting To Know Oscillators.)
Most of the indicators used to measure momentum are interpreted by using certain values that suggest the asset may be getting overbought or oversold. The strength of current momentum is considered to be getting weaker when indicators such as the ones mentioned above have values that demonstrate overbought or oversold conditions. For example, many traders suggest that an asset with an RSI below 30 or a stochastic value below 20 may experience a reduction in the amount of downward momentum and is a likely candidate for a reversal.
You may notice that many momentum indicators are bound between two extreme levels, usually 0 to 100 or 100 to +100. This is important because a cross through the center line of the indicator is interpreted to mean that momentum is either increasing or decreasing, depending on the direction. For example, momentum is said to be increasing when the ROC indicator crosses above the 0 line, and decreasing when it crosses down through 0.
In addition to the methods we've already mentioned, traders can also monitor the crossing of certain moving averages to confirm the strength of a price move. Momentum is said to be increasing when a shortterm average crosses above a longerterm average. This is the premise behind the MACD indicator, which uses a 12day exponential moving average and a 26day EMA. When this indicator has a value greater than 0, it means that the shorterterm average is above the longerterm average, and it may suggest that momentum is increasing.
To learn more about momentum trading, see Introduction To Types Of Trading: Momentum Traders and Momentum Trading With Discipline.

What are the best technical indicators that complement the Relative Strength Index ...
Learn some of the best additional technical indicators that can be used along with the relative strength index to anticipate ... Read Answer >> 
What are the most common momentum oscillators used in forex trading?
Explore two frequently used momentum indicators in forex trading, the moving average convergence divergence, or MACD, and ... Read Answer >> 
How are moving averages used in trading?
Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages ... Read Answer >> 
Why is the Moving Average Convergence Divergence (MACD) important for traders and ...
Take a look inside one of the most popular and widely trusted technical indicators, the moving average convergence divergence, ... Read Answer >> 
What are the best technical indicators that complement the Price Rate Of Change (ROC)?
Explore some of the best technical indicators, such as moving averages, that complement trading strategies using the price ... Read Answer >> 
What are the best technical indicators to complement the Dynamic Momentum Index?
Use other technical indicators to complement the use of the dynamic momentum index in analyzing a market and determining ... Read Answer >>

Trading
A Primer On The MACD
Learn to trade in the direction of shortterm momentum. 
Trading
Moving Average Convergence Divergence  MACD
Learn about this momentum indicator that shows the relationship between two moving averages. 
Managing Wealth
The Top Technical Indicators For Commodities Investing
Traders can use "the usual suspects" (standard indicators for trend trading) when it comes to choosing indicators for investing in commodities. Here's how. 
Trading
MACD And Stochastic: A DoubleCross Strategy
Two indicators are usually better than one. Find out how this pairing can enhance your trading. 
Trading
Exploring Oscillators and Indicators: MACD
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The moving average convergence divergence (MACD) is one of the most well known and used indicators in technical analysis. ... 
Trading
MACD And Stochastic: A DoubleCross Strategy
The stochastic oscillator and the moving average convergence divergence (MACD) are two indicators that work well together. 
Trading
Spotting Trend Reversals With MACD
Knowing when trends are about to reverse is tricky business, but the MACD can help. 
Trading
Forex: Keep An Eye On Momentum
Using the simple MACD histogram could change how forex traders analyze currency pairs for good. 
Investing
Measuring Stock Market Sentiment With Extreme Indicators
Pay attention to how the exhaustion principle helps technical indicators signal trend reversals when abrupt value changes coincide with high trading volume. 
Trading
Exploring Oscillators and Indicators: Conclusion
By Chad Langager and Casey Murphy, senior analyst of ChartAdvisor.com The goal of every shortterm trader is to determine the direction of a given asset's momentum and to attempt to profit from ...

MACD Technical Indicator
Moving Average Convergence Divergence (or MACD) is a trendfollowing ... 
Price Rate Of Change  ROC
A technical indicator that measures the percentage change between ... 
Dynamic Momentum Index
An indicator used in technical analysis that determines overbought ... 
True Strength Index  TSI
A technical momentum indicator that helps traders determine overbought ... 
Momentum
The rate of acceleration of a security's price or volume. The ... 
Disparity Index
A technical indicator that measures the relative position of ...