What are Momentum Indicators and How to Use Them in Kyvoo Trading
5 minReading time
Published Oct 18, 2025
The momentum indicators are technical analysis tools used to measure the strength or weakness of a price trend. In simple terms, momentum is the speed at which the price of an asset rises or falls.
Among the most common indicators are the Relative Strength Index (RSI), the MACD (Moving Average Convergence Divergence), and the Bollinger Bands. In this article, we will explore in detail the RSI and how it can be used in conjunction with other indicators to improve your trading strategy.
Open your account at Kyvoo and practice with the RSI
Key Points About Momentum Indicators
The most common are RSI, MACD, and Bollinger Bands.
They show the strength or weakness of a price trend.
Standard overbought and oversold levels on the RSI are 70 and 30.
Changing the levels to 80/20 can reduce false signals.
They work best when combined with other confirmation indicators.
Understanding Momentum Indicators
Momentum indicators help traders and investors understand how strong a price trend is and whether there are signs of weakening or possible reversal.
This reading can indicate ideal moments to enter or exit the market. Historically, these indicators tend to be more useful in bull markets, as bull markets tend to last longer than bear markets.
Try Kyvoo's free demo account and test entry and exit strategies safely.
RSI: Relative Strength Index
Created by J. Welles Wilder Jr. in the late 1970s, the RSI (Relative Strength Index) measures the speed and magnitude of price changes.
The RSI assigns values between 0 and 100 on a chart.
Values above 70 indicate possible overbuying.
Values below 30 signal overselling.
Some traders adjust these limits to 80/20 or even 90/10, giving more room to avoid false signals and premature anticipations.
In general, the RSI is applied to daily charts but can also be used over shorter periods for quick analyses.
See how to apply the RSI in real time at Kyvoo
The momentum indicators are technical analysis tools used to measure the strength or weakness of a price trend. In simple terms, momentum is the speed at which the price of an asset rises or falls.
Among the most common indicators are the Relative Strength Index (RSI), the MACD (Moving Average Convergence Divergence), and the Bollinger Bands. In this article, we will explore in detail the RSI and how it can be used in conjunction with other indicators to improve your trading strategy.
Open your account at Kyvoo and practice with the RSI
Key Points About Momentum Indicators
The most common are RSI, MACD, and Bollinger Bands.
They show the strength or weakness of a price trend.
Standard overbought and oversold levels on the RSI are 70 and 30.
Changing the levels to 80/20 can reduce false signals.
They work best when combined with other confirmation indicators.
Understanding Momentum Indicators
Momentum indicators help traders and investors understand how strong a price trend is and whether there are signs of weakening or possible reversal.
This reading can indicate ideal moments to enter or exit the market. Historically, these indicators tend to be more useful in bull markets, as bull markets tend to last longer than bear markets.
Try Kyvoo's free demo account and test entry and exit strategies safely.
RSI: Relative Strength Index
Created by J. Welles Wilder Jr. in the late 1970s, the RSI (Relative Strength Index) measures the speed and magnitude of price changes.
The RSI assigns values between 0 and 100 on a chart.
Values above 70 indicate possible overbuying.
Values below 30 signal overselling.
Some traders adjust these limits to 80/20 or even 90/10, giving more room to avoid false signals and premature anticipations.
In general, the RSI is applied to daily charts but can also be used over shorter periods for quick analyses.
See how to apply the RSI in real time at Kyvoo
Difference Between RSI and Relative Strength
Although they may seem similar, they are different concepts:
Relative Strength (RS): compares the performance of an asset relative to another or a benchmark index.
RSI: measures the speed of price changes of a specific asset.
How to Use RSI with Other Indicators
The RSI is more effective when used in conjunction with other momentum indicators, such as moving averages and the MACD itself.
Example:
If a 10-day moving average crosses with the 25-day indicating a trend change and the RSI is in the 70 or 30 zone, it reinforces the signal.
The MACD, in turn, can confirm divergences and give more confidence to the trader before opening or closing positions.
Access Kyvoo now and combine RSI + MACD in your analyses
Advantages of Momentum Indicators
They help measure the strength of the trend.
They provide clues about possible reversals.
They allow for clearer identification of entry and exit points.
Disadvantages of Momentum Indicators
They are lagging indicators, as they react after the price movement.
In very volatile markets, they can generate inconsistent signals.
They require confirmation with other technical analysis tools.
Conclusion
Momentum indicators are important allies for traders who want to understand the strength of a trend and prepare for reversals. The RSI is one of the most used and can indicate overbought or oversold conditions in a simple way, especially when combined with other indicators like the MACD.
Whether you are a beginner or experienced, using these resources strategically can elevate the quality of your trades.
Disadvantages of Momentum Indicators
They are lagging indicators, as they react after the price movement.
In very volatile markets, they can generate inconsistent signals.
They require confirmation with other technical analysis tools.
Conclusion
Momentum indicators are important allies for traders who want to understand the strength of a trend and prepare for reversals. The RSI is one of the most used and can indicate overbought or oversold conditions in a simple way, especially when combined with other indicators like the MACD.
Whether you are a beginner or experienced, using these resources strategically can elevate the quality of your trades.
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The momentum indicators are technical analysis tools used to measure the strength or weakness of a price trend. In simple terms, momentum is the speed at which the price of an asset rises or falls.
Among the most common indicators are the Relative Strength Index (RSI), the MACD (Moving Average Convergence Divergence), and the Bollinger Bands. In this article, we will explore in detail the RSI and how it can be used in conjunction with other indicators to improve your trading strategy.
Open your account at Kyvoo and practice with the RSI
Key Points About Momentum Indicators
The most common are RSI, MACD, and Bollinger Bands.
They show the strength or weakness of a price trend.
Standard overbought and oversold levels on the RSI are 70 and 30.
Changing the levels to 80/20 can reduce false signals.
They work best when combined with other confirmation indicators.
Understanding Momentum Indicators
Momentum indicators help traders and investors understand how strong a price trend is and whether there are signs of weakening or possible reversal.
This reading can indicate ideal moments to enter or exit the market. Historically, these indicators tend to be more useful in bull markets, as bull markets tend to last longer than bear markets.
Try Kyvoo's free demo account and test entry and exit strategies safely.
RSI: Relative Strength Index
Created by J. Welles Wilder Jr. in the late 1970s, the RSI (Relative Strength Index) measures the speed and magnitude of price changes.
The RSI assigns values between 0 and 100 on a chart.
Values above 70 indicate possible overbuying.
Values below 30 signal overselling.
Some traders adjust these limits to 80/20 or even 90/10, giving more room to avoid false signals and premature anticipations.
In general, the RSI is applied to daily charts but can also be used over shorter periods for quick analyses.
See how to apply the RSI in real time at Kyvoo
Difference Between RSI and Relative Strength
Although they may seem similar, they are different concepts:
Relative Strength (RS): compares the performance of an asset relative to another or a benchmark index.
RSI: measures the speed of price changes of a specific asset.
How to Use RSI with Other Indicators
The RSI is more effective when used in conjunction with other momentum indicators, such as moving averages and the MACD itself.
Example:
If a 10-day moving average crosses with the 25-day indicating a trend change and the RSI is in the 70 or 30 zone, it reinforces the signal.
The MACD, in turn, can confirm divergences and give more confidence to the trader before opening or closing positions.
Access Kyvoo now and combine RSI + MACD in your analyses
Advantages of Momentum Indicators
They help measure the strength of the trend.
They provide clues about possible reversals.
They allow for clearer identification of entry and exit points.
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Disadvantages of Momentum Indicators
They are lagging indicators, as they react after the price movement.
In very volatile markets, they can generate inconsistent signals.
They require confirmation with other technical analysis tools.
Conclusion
Momentum indicators are important allies for traders who want to understand the strength of a trend and prepare for reversals. The RSI is one of the most used and can indicate overbought or oversold conditions in a simple way, especially when combined with other indicators like the MACD.
Whether you are a beginner or experienced, using these resources strategically can elevate the quality of your trades.