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Topic
Momentum
36 guides in Finabase Learn
- 52-week high and low The highest and lowest prices a security has traded at over the past year, a common reference for range and momentum.
- Absolute Price Oscillator (APO): moving-average gap in dollars What the Absolute Price Oscillator measures, why Finabase’s APO uses simple averages unlike MACD, a worked example on Visa, its zero-line signals and their limits.
- All-time high The highest price a security or index has ever reached; a stock at an all-time high has no overhead resistance from past buyers.
- Breakout A move of price through a support or resistance level or out of a chart pattern, often watched for a pickup in volume.
- Chande Momentum Oscillator (CMO): formula and Finabase’s version How Tushar Chande’s CMO compares up-day and down-day totals, why Finabase’s TA-Lib CMO equals 2 × RSI − 100, a worked example on Home Depot, and how to read ±50.
- Closing marubozu: a candle that ends at its extreme, tested How a closing marubozu differs from a full marubozu, the one-shadow rule TA-Lib uses, and why a pattern on 13% of all days says little.
- Commodity Channel Index (CCI): formula, ±100 and two readings How Donald Lambert’s CCI measures distance from the average typical price, a worked Caterpillar example, the two readings of ±100 and Finabase’s scoring.
- Divergence When price and an indicator move in opposite directions, such as a new price high with a lower RSI high, hinting momentum is fading.
- Divergence: regular and hidden, bullish and bearish, with RSI and MACD How to spot regular and hidden divergence between price and RSI or MACD, real Tesla examples, a small test on seven symbols, and why divergence needs confirmation.
- Fast stochastic oscillator: raw %K, %D and its whipsaws How the fast stochastic differs from the slow one, a worked 5-bar %K on PepsiCo, why it swings from 82 to 0.6 in three days, and how Finabase computes and flags it.
- Flags and pennants: trading the pause after a sharp move How bull and bear flags and pennants form after a steep pole, how to measure the target, and how 66 real flags on large US stocks actually performed.
- Identical three crows: the no-relief bearish pattern How identical three crows differ from three black crows, the open-at-the-close rule TA-Lib checks, and what the three real cases in our study show.
- Long line candle: what TA-Lib’s CDLLONGLINE really measures The long line candle defined precisely, why it fires on about one day in five, how it overlaps other patterns, and what 5,743 cases did next.
- MACD Moving average convergence divergence: the 12-period EMA minus the 26-period EMA, with a 9-period signal line.
- MACD indicator: signal line, histogram and divergence How the MACD line, signal line and histogram are calculated, how to read crossovers, the zero line and divergence on Microsoft’s 2026 chart, and how Finabase scores it.
- Marubozu candlestick: the shadowless candle, rules and real data What a white or black marubozu shows, how TA-Lib decides a candle has “no shadows”, why every one is also tagged three other ways, and 1,227 tests.
- Momentum indicator (MOM): price change over n bars How the Momentum indicator subtracts the close n bars ago, a worked Oracle example of its echo effect, zero-line signals over a 46% decline, and how Finabase scores it.
- Money Flow Index (MFI): the volume-weighted RSI How the Money Flow Index combines typical price and volume into a 0–100 oscillator, a worked calculation on Starbucks, how it differs from RSI, and Finabase’s MFI.
- Oscillator An indicator that moves within a band or around a center line, such as RSI or stochastics, used to gauge momentum and extremes.
- Overbought A reading that price has risen far and fast relative to its recent history, flagged by oscillators such as RSI above 70.
- Oversold A reading that price has fallen far and fast relative to its recent history, flagged by oscillators such as RSI below 30.
- Rate of Change (ROC): percentage momentum and how to read it How the Rate of Change measures percentage price change over n bars, a worked example on the energy ETF XLE, reading its zero line and extremes, and Finabase’s ROC.
- Relative strength How a stock has performed compared with a benchmark or its peers, often charted as a ratio line; not the same thing as the RSI.
- Relative strength and market breadth: ratio lines, A/D and % above MA How to measure a stock or sector against a benchmark with a ratio line, how breadth gauges like the advance/decline line work, and what they showed in 2025–2026.
- Relative Strength Index (RSI) A 0–100 momentum oscillator that compares the size of recent gains with recent losses, with 70 and 30 as common extreme levels.
- Relative Strength Index (RSI): how to read and use it What the RSI measures, how Wilder’s formula works step by step, how to read overbought, oversold, divergence and failure swings, and where it fails.
- ROCP (rate of change percentage): returns as fractions What ROCP is, how it differs from ROC, why adding or averaging returns misleads, a compounding example on Eli Lilly, and how to use ROCP in Finabase charts.
- ROCR (rate of change ratio): growth factors and relative strength What ROCR measures, why a ratio is the natural form for chaining returns and comparing a stock with the market, a Boeing versus SPY example, and Finabase’s ROCR.
- Stochastic oscillator A momentum indicator that shows where the latest close sits within the high-low range of a recent window, scaled from 0 to 100.
- Stochastic oscillator (slow %K and %D): how to read it How George Lane’s slow stochastic places the close within its recent range, a worked %K and %D on Johnson & Johnson, the 80/20 levels and Finabase’s 15/5 settings.
- Stochastic RSI (StochRSI): an oscillator of an oscillator How StochRSI applies the stochastic formula to RSI values, a worked example on Broadcom, why Finabase’s 14/5/3 setting pins at 0 and 100, and how to read it.
- Three black crows: meaning, TA-Lib rules and real examples What three black crows look like, the four-candle test TA-Lib actually runs, two real cases on DIA and Eli Lilly, and why four detections settle nothing.
- Three white soldiers candlestick pattern: rules and real results How to identify three white soldiers, the strict shadow rule that makes TA-Lib’s version rare, real examples from Walmart and Citigroup, and what 12 cases did next.
- TRIX indicator: triple-smoothed momentum and its zero line How TRIX takes the one-bar percent change of a triple EMA, a worked calculation on Disney, why it filters noise but lags, and how Finabase scores its zero line.
- Ultimate Oscillator: three timeframes and Williams’ rules How Larry Williams’ Ultimate Oscillator blends 7-, 14- and 28-bar buying pressure, a worked Intel calculation, his divergence sell rule in action and Finabase’s settings.
- Williams %R: formula, −20/−80 levels and real signals How Larry Williams’ %R measures the close against the recent high, a worked calculation on Walmart, how its −20 and −80 signals fared over a year, and Finabase’s scoring.
Educational content, not investment advice. Finabase Learn explains how markets and tools work. It does not recommend any security or strategy, and examples are for illustration only. Investing involves risk, including the loss of principal. Rules and figures are for the United States unless stated and can change — check the cited source before you act.