The most commonly used momentum oscillators are:
- Momentum,
- Rate of Change,
- Relative Strength and
- Stochastic.
1. It does not fluctuate between set limits, meaning that Overbought and Oversold levels have to be re-set for each stock;
2. Movements tend to erratic; and
3. Unusually high or low prices at the start of the indicator window (e.g. 14 days ago on a 14 day indicator) cause distortion. This is shown in more detail in Momentum.