3 Ways to Use the Momentum Indicator
Stay with an uptrend as long as the momentum indicator remains above 0, and exit the trade when the indicator drops back below 0.
The figure shows what the chart looks like when the momentum crosses 0.
Draw a trend line on the momentum indicator line, and exit your trade when the trend line on the indicator is broken.
The figure shows an example.
Exit your trend trade when you see a divergence between price and the momentum indicator line.
There’s a higher high on price and a lower high on the indicator.