Difference between speed, momentum and volume?? | Forex Factory

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Difference between speed, momentum and volume??

  • #1
  • First Post: Jun 17, 2010 9:05am Jun 17, 2010 9:05am
When there is a strong move , upward or downward , then this move halted or got weak. What do u call this decrease? Decrease of speed , momentum or volume??

Also what is your favourite method to measure movement exhaution when approaching key levels?? other than candlestick patterns of course.
  • #2
  • Jun 17, 2010 1:54pm Jun 17, 2010 1:54pm
??? There are pretty good traders posting in this forum.
  • #3
  • Jun 17, 2010 3:37pm Jun 17, 2010 3:37pm
Momentum= moving many pips in a short period of time
Volume= if there is a big trend, more traders have jumped on the wagoon. So there is much volume.

so the bigger the momentum, the bigger the volume as well.
  • #4
  • Jun 17, 2010 3:39pm Jun 17, 2010 3:39pm
Quoting woo
Momentum= moving many pips in a short period of time
Thats the same definition of speed??
  • #5
  • Jun 17, 2010 3:45pm Jun 17, 2010 3:45pm
Not necessarily, speed can be associated with lack of volume which makes price erratic.
Biggest joker
  • #6
  • Jun 17, 2010 4:37pm Jun 17, 2010 4:37pm
Define Speed in Forex. I understand Momentum & Volume, What do you mean by speed, this depends on your timeframe ?
It never gets easier, you just get better
  • #7
  • Jun 17, 2010 4:48pm Jun 17, 2010 4:48pm
Quoting Shabs19
Define Speed in Forex. I understand Momentum & Volume, What do you mean by speed, this depends on your timeframe ?
A long candle in any time frame should represent a "fast" movement. Where price quickly change /time.

Velocity = distance/time
So in FX velocity = pips/time.

??
  • #8
  • Jun 18, 2010 1:04am Jun 18, 2010 1:04am
BRB, in short, I agree. Velocity=speed=pips over time.
Actual volume is impossible to measure, so tick volume is used as a proxy by some for real volume. But tick volume is v.v.v. tightly correlated to OHLC data, which you can see on a normal candle, so it doesn't offer any additional info.

As baron says, momentum suggests follow through, which isn't always the case. Eg stop runs faded by big players move very quickly up and then down.
  • #9
  • Jun 18, 2010 1:38am Jun 18, 2010 1:38am
Quoting Brb-Fraudin
When there is a strong move , upward or downward , then this move halted or got weak. What do u call this decrease? Decrease of speed , momentum or volume??

Also what is your favourite method to measure movement exhaution when approaching key levels?? other than candlestick patterns of course.

I define speed as the slope of a fast moving average or trend line - there is a histogram indicator for the angle / slope of a MA and using a Gann Angle line you can calculate the angle.

All moves tend to be in waves - a move followed by a retrace. For me, when the latest move has fewer pips than the previous move the momentum is decreasing and vice versa.

Volume is showing the ammount of participants enttering or exiting the market and by using Volume Spread Analysis we can draw conclusions about possible continuations or turning points.
Trading Levels with WRBs
  • #10
  • Jun 18, 2010 4:18am Jun 18, 2010 4:18am
Quoting Brb-Fraudin
When there is a strong move , upward or downward , then this move halted or got weak. What do u call this decrease? Decrease of speed , momentum or volume??

Also what is your favourite method to measure movement exhaution when approaching key levels?? other than candlestick patterns of course.
Speed = high (pips/time) ;
momentum = almost constant (pips/time) over a certain period ;
volume = I don't have volume in my forex charts.

If your strong move got halted --> perfect entry point for a reversal.
If your strong move got weak --> perfect entry point for a trend continuation.

I don't use key levels, candlestick patterns or movement exhaustion.
Depending on your strategy, if for example you're following a downtrend on the 30 min chart, you could say that if CCI 14 period on 5 min chart gets over 100 or if it stays over 100 for more than 3 periods, your trend is getting erratic and you should switch to another approach.
That's not what I do but that's an idea.
  • #11
  • Feb 18, 2026 10:20am Feb 18, 2026 10:20am
Just sharing how I personally try to separate these terms in my mind:

speed as pips per unit time (how fast price moves).
Momentum: as how long that directional movement persists without meaningful pullback.
Volume: as participation/activity behind the move (in spot FX mostly reflected through tick activity).
So a move can be very fast but not have much persistence.
And sometimes we see increased activity but limited progress (possible absorption).
When a strong move weakens, I tend to see it first as a loss of persistence, then a reduction in speed — volume may or may not decrease.
Just my way of organizing it conceptually.
  • #12
  • Last Post: Feb 18, 2026 11:07am Feb 18, 2026 11:07am
Quoting EmadM
Just sharing how I personally try to separate these terms in my mind: speed as pips per unit time (how fast price moves). Momentum: as how long that directional movement persists without meaningful pullback. Volume: as participation/activity behind the move (in spot FX mostly reflected through tick activity). So a move can be very fast but not have much persistence. And sometimes we see increased activity but limited progress (possible absorption). When a strong move weakens, I tend to see it first as a loss of persistence, then a reduction in speed...
Nice breakdown! I see it similarly: speed how fast, momentum how long it lasts, volume participation. Often a move fades first by losing momentum, then slowing down volume may confirm or stay tricky in spot FX.
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