Momentum indicator guide

A reference for the three oscillator families we teach in workshops. Use this to prepare before booking or to revisit concepts after a session.

RSI

Relative Strength Index

Measures the speed and magnitude of recent price changes on a 0–100 scale. Default period: 14. We teach 30/70 zones as context markers, not automatic triggers.

Entry use: Look for oversold readings that coincide with support or bullish divergence when price makes a lower low but RSI makes a higher low.

Limitation: In strong trends, RSI can remain overbought or oversold for extended periods — buying oversold in a downtrend often fails.

MACD

Moving Average Convergence Divergence

Combines two EMAs (typically 12 and 26) with a signal line (9-period EMA of MACD) and histogram showing momentum acceleration or deceleration.

Entry use: Histogram shrinking toward zero after a pullback, then expanding in trade direction, often precedes price continuation on slower timeframes.

Limitation: Crossovers lag price. Late entries are common if you wait for full signal-line confirmation on fast markets.

Stochastic

Stochastic Oscillator

Compares closing price to the range over a lookback period. Fast stochastic (5,3,3) reacts quickly; slow stochastic (14,3,3) smooths noise for swing entries.

Entry use: In ranging markets, %K crossing above %D from below 20 can flag short-term long entries near range support.

Limitation: Whipsaws in trending conditions. Combine with higher-timeframe structure before acting.

How we combine indicators in workshops

We discourage stacking five oscillators on one chart. Our default workflow:

  1. Structure first. Identify support, resistance, or trend channel on the timeframe you intend to trade.
  2. One primary oscillator. Choose RSI for divergence work, MACD for momentum shifts, or stochastic for range trades — based on market conditions.
  3. Confirmation rule. Write a single sentence entry rule before the session. Example: "Long only when price holds above 20-day MA and RSI crosses above 40 from below 30."
  4. Mark failures. For every valid setup, mark two historical cases where the same signal failed. This builds realistic expectations.

Upcoming workshop dates

Date Session Places left
12–13 September 2026 Momentum Entry Timing Workshop 3 of 8
18 October 2026 RSI Deep Dive Session 5 of 6
7–8 November 2026 Momentum Entry Timing Workshop 6 of 8

Places are indicative — confirm availability before paying a deposit. Remote coaching slots are booked individually.

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