Momentum

What does it Mean? The rate of acceleration of a security's price or volume.
Investopedia Says... Once a momentum trader sees an acceleration in a stock's price, earnings, or revenues, the trader will often take a long or short position in the stock with the hope that its momentum will continue in either an upwards or downwards direction. This strategy relies more on short-term movements in price rather then fundamental particulars of companies, and is not recommended for novices.

Terms Related Links

Contrarian
Countertrend Strategy
Kijun-Sen
Momentum Fund
Momentum Investing
Price By Volume Chart - PBV
Price Rate Of Change - ROC
Setup Price
Style
Technical Indicator

Terms Related Links
Moving Average MACD Combo - Learn a strategy with clear entry and exit levels that will get you into a trend at the right time.

Divergence: The Trade Most Profitable - Comparing price swings helps traders gain insight into price momentum.

Market Strength Tutorial - Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the market's present trend.

Momentum Trading with Discipline - This type of strategy demands controlled decision making, requiring a continual refinement of entry and exit techniques.

Volume Oscillator Confirms Price Movements - Use this indicator to validate a change in price direction and moving averages.

Moving Averages: How To Use Them - We''ll show you how technical analysts use moving averages to identify trends and reversals.

Candle Sheds More Light Than The MACD - Read the case against this well-established indicator.

Measure Momentum Change With ROC - Learn how to build a price rate of change indicator and incorporate it in your strategy.

Getting Confirmation with the Momentum Strategy - Learn how to use a number of different indicators to know when to make your trading moves.

Exploring Oscillators and Indicators: Leading And Lagging Indicators - Create buy-and-sell signals to identify market trends.

Introduction To Trading: Momentum Traders - Explore in detail an approach that focuses on stocks moving in one direction on high volume.

Ichimoku Cloud Filters Information Storm - Discover how this high-flying application can be used in forex trading.

Exploring Oscillators and Indicators - Find out how to use these technical analysis building blocks.

Free Trading Software - Nearly 80% Accurate* Market Forecasting Software. Get FREE predictions and see for yourself!

Five Chart Patterns You Need to Know - Learn to maximize profits in up and down markets with this free report from ChartAdvisor.com!

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