What's Momentum Indicator and it's use in trading.

What's Momentum Indicator and it's use in trading.

WHAT IS MOMENTUM INDICATOR:

INTRODUCTION: Momentum Indicator aik technical analysis tool hai jo trade ma istemal hota hai. Iska maqsad ye maaloom karna hota hai ky kisi mudat mein qeemat ya condition ki raftar kis taraf ja rahi hai. Ye indicator tijarati karobar mein madadgar hota hai ta ky investors ko market ki halat ka andaza ho aur wo behtar faislay le saken. Formula: Momentum indicator ka formula simple hai: Momentum = Current Price - Price 'n' Periods Ago Yahan 'n' periods ki value trader ki preference ky mutabiq ho sakti hai, lekin usually log 12 ya 14 periods ko istemal karte hain. USES: Is indicator ka istemal zyadatar 2 maqsad ke liye hota hai: Trend ki tasdeeq aur overbought/oversold states ka pata lagana. 1: Trend ki tasdeeq ke liye : jab momentum indicator upar se neeche ki taraf badal jata hai, to yeh signal deta hai ky trend kamzor ho raha hai aur market girne ki taraf ja sakti hai. Jab yeh indicator neeche sy upar ki taraf badal jata hai, to iska matlab hota hai ky trend strong ho raha hai aur market barhegi. Is tarah sy, investors ko trend ki tabdeeli ka andaza hota hai. 2: Overbought aur oversold states ka pata lagane ke liye: investors momentum indicator ki madad sy market ki routine ko samajhtey hain. Agar momentum indicator zyada barhta hai aur tezi se upar jaata hai, to iska matlab hota hai ky market overbought ho gayi hai, yani ky qeemat zyada tez raftar se barh rahi hai aur thori dair mein woh gir sakti hai. Waisay agar momentum indicator zyada less hta hai aur neechy jata hai, to iska matlab hota hai ky market oversold ho gayi hai, yaani ky qeemat zyada tez raftar se ghat rahi hai aur woh jald hi tezi sy barh sakti hai. Momentum indicator ki madad sy, tijarat karnay wale log market ky hawaly sy behtar faislay ly sakty hain. Lekin yaad rahe ky yeh aik unreliable tool hai, iska matlab yeh nahi ky is par poori tarah se bharosa kiya jaye. Isky saath saath, dusry technical aur muddat ki tafseelat bhi samajhni zaroori hoti hain taky theek tariqe se faisla kiya ja sake. Conclusion: To conclude, Momentum Indicator tijarati as par tajwez diya gaya hai jo market ky trends aur overbought/oversold states ko pehchany mein madadgar hota hai. Iska formula simple hai aur iska istemal business mein behtar faislay leny ke liye hota hai. Isky zariye investors ko market ki raftar ka andaza hota hai takey woh apni strategies ko sahi tarah sy tashkeel dy saken.