Usage of the Momentum Indicator 

The Momentum indicator shows the change of the instrument price over a certain period of time.

On the up-trend, if the price is approaching the peak, it starts to grow rapidly, and so the Momentum indicator jumps up. Then it begins to fall, while the price continues to slowly grow. This is usually the sign of the upcoming price fall.

On the opposite, if the price is approaching the bottom point on a down-trend, it starts to fall faster than before, and the Momentum falls down noticeably. Then it begins to grow, although the price continues to fall. This shows that the price will go up.

In a strategy, when the momentum forms a deep hollow and starts to grow, it is reasonable to open a buy position. If the momentum forms a high peak and starts to fall, it is reasonable to open a sell position.