Momentum trading relies on various indicators to identify the strength and speed of price movements, helping traders make informed decisions about entering and exiting trades. Here are some key indicators commonly used in momentum trading:

Relative Strength Index (RSI): RSI measures the magnitude of recent price changes to evaluate overbought or oversold conditions. An RSI above 70 typically indicates that an asset is overbought, while an RSI below 30 suggests it is oversold.

Moving Average Convergence Divergence (MACD): MACD is used to identify changes in the strength, direction, momentum, and duration of a trend. It involves the difference between two moving averages (usually the 12-day and 26-day EMA) and a signal line, helping traders spot potential buy or sell signals.

Stochastic Oscillator: This indicator compares a security's closing price to its price range over a specified period. It helps in identifying overbought or oversold conditions, similar to RSI, with values above 80 indicating overbought and below 20 indicating oversold conditions.

Average Directional Index (ADX): ADX measures the strength of a trend, regardless of its direction. A high ADX value (usually above 20) signifies a strong trend, which can be useful for confirming momentum.

On-Balance Volume (OBV): OBV uses volume flow to predict changes in stock price. It increases when the volume on up days exceeds the volume on down days and decreases in the opposite scenario, helping traders identify potential trends and momentum shifts.

By combining these indicators, momentum traders can gain a comprehensive view of market conditions and make more precise trading decisions.