Dear amit,
Momentum..??
you can use any momentum oscillator you want to use. But you should know what you are reading into. I mean dont ever treat RSI 70 as reversal zone. IF Rsi attempting 70 levels and its a strong rise, expect another 20-30% rise in stock when RSI is above 70. It means prices closing in strength and in every up closing bringing more gains than loss for every down close.
Many times, prices remain trending and RSI in higher timaframe like weekly witness RSI- 70 zone and above. So gist is you should know nature of momentum you are reading into. I designed myself, a momentum reader similar to MACD one. For psecific reason i cant tell exact what it is. But yes readings are similar to MACD ones.
Now coming yo your next q's.
Let me tell the thought pricess, though its not exact 100% but yes majority my thinking goes on same lines, i had few templates like below one, then for volume, then for RS.
I will discus one of it, already volume and RS based posted on many charts.
You had marked pivots on monthly chart. Nice ones. You can marked similar on weekly too. Now see my chart, where i am seeing 50 SMA which is my favorite one holding up near to 800 zone approx. 803 or so. This is 'one way' of looking at things.
Now i see whether its really imp zone. I switched to weekly, and see yes it got many weekly pivots forming at that zone. So its a crucial levels to hold on.
Now CMP - 885 as per your chart, and one want to initiate position in it. What to do..??
Monthly chart, telling a prev month pin bar formation, so stock seeing supply at those levels, implying caution or monitoring if you r long in it.
This month trying to hold pivot zone of 870 as you had marked.
Weekly chart, a big red candle selloff, prices trying to form support here as of now on pivot zone.
Daily chart, some reversal formation trying to be taken bu bulls, if succeded good else below 870 you know what to expect for.
So if i want to initiate, i will put very small amt in this stock, why..??
First monthly chart no good. Second there is a momentum div on weekly, although long term still up. but prices need to cool down here or somewhat lower.
Even if i want to go long, i will see near 825-833 zone, and putting SL below 800.
but as i see, price already turned up from 838 levels on friday, so it seems dicey here to enter, as it turned up from my zone of favourable R:R.
These is one of ways to deal with it.
