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Momentum
It measures the amount of change in commodity’s price during a period of time.
Momentum
indicators presume that the current tendency will continue. So, if the
indicator reaches the extremely high values and then turns downwards,
the coming price increasing should be expected. But, in any case, one
should not open/close position before the prices confirm the signal of
the indicator.
Momentum line goes long when:
Momentum crosses to
below the oversold level and then rises back above it; or on bullish
divergences - where the first trough is below the oversold level.
Momentum line goes short when:
Momentum
crosses to above the overbought level and then falls back below it; or
on a bearish divergence with the first peak above the overbought level.
Line Chart:
Is a two-dimensional scatter plot of ordered observations where the observations are connected following their order.
The
line chart is a graphical representation of the historical exchange
rate of a specific currency pair in a certain period of time. The line
is brought into existence and drew according to the closing prices
connection of the day.



