Momentum

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Dictionary Says

Definition of 'Momentum'

The rate of acceleration of a security's price or volume. The idea of momentum in securities is that their price is more likely to keep moving in the same direction than to change directions. In technical analysis, momentum is considered an oscillator and is used to help identify trendlines.
Investopedia Says

Investopedia explains 'Momentum'

Once a momentum trader sees acceleration in a stock's price, earnings or revenues, the trader will often take a long or short position in the stock in the hope that its momentum will continue in either an upward or downward direction. This strategy relies on short-term movements in a stock's price rather than fundamental value, and it is not recommended for novices.

Articles Of Interest

  1.

    Momentum Trading With Discipline

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

  2. Use The Momentum Strategy To Your Advantage

    Learn how to use a number of different indicators to know when to make your trading moves.

  3. Confirming Price Movements With Volume Oscillators

    Use this indicator to validate a change in price direction and moving averages.

  4. Divergence: The Trade Most Profitable

    Comparing price swings helps traders gain insight into price momentum.

  5. Top 4 Fibonacci Retracement Mistakes To Avoid

    Using Fibonacci incorrectly can have disastrous consequences. Find out which common moves to avoid.

  6. Introduction To Momentum Trading

    This trading style offers major profit potential thanks to the powerful way in which momentum can drive a stock.

  7. Measure Momentum Change With ROC

    Learn how to build a price rate of change indicator and incorporate it in your strategy.

  8. Forex: The Moving Average MACD Combo

    Learn a strategy with clear entry and exit levels that will get you into a trend at the right time.

  9. An Introduction To Ichimoku Charts In Forex Trading

    Discover how this high-flying application can be used in forex trading.

  10. Candle Sheds More Light Than The MACD

    Read the case against this well-established indicator.
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