A Momentum chart in NFTs is a TA analysis tool used to determine the strength or weakness of an asset's price.
Momentum is used to help determine the rate of the increase or decrease in value, volume. In traditional markets, common momentum indicators include the relative strength index (RSI) and moving average convergence divergence (MACD).
What exactly is the benefit of momentum trading?
An easy explanation is - buying low and selling high, buy the red, sell the green. Using a momentum chart can give yourself a better opportunity to succeed in this. You are looking to use it to your benefit, by looking to get a signal that momentum is increasing, buy/entry point. Then by monitoring the chart and looking for a reduction in momentum volume - top signal, this is where you take the opportunity to sell and take profit. Momentum trades are not usually long term holds – they are genuinely used as short-term flips. Mintify pulls all the on-chain data for our charts directly from the blockchain in real-time, this is a key benefit for our charts, especially for momentum trading.
Our Momentum chart is color coded, showing the data in an easy to evaluate visual graph. Green – Listings (the number of tokens for sale), Orange – Sales (the number of completed transactions), Yellow – Delisted (the number of tokens removed from the order block), White trend line – Listers (the number of individual wallets listing) You can customise the filter on the chart, by Eth Value threshold which is free format and then timeframe (5m, 15m, 1h, 4h, 12h, 14h, 7d, 15d, 30d).