Price Persistence

AAA

DEFINITION of 'Price Persistence'

The tendency of a security's cost to continue moving in its present direction. A stock that has been in a strong upward or downward trend for weeks will display a high degree of price persistence. Conversely, a stock that has been trading in a choppy manner for an extended period of time will display a low degree of price persistence.

INVESTOPEDIA EXPLAINS 'Price Persistence'

Opinion is divided on the investment merits of stocks displaying a high degree of price persistence. Technical analysts who believe that the "trend is your friend" may consider a stock in a strong upward trend as a good investment candidate based on the view that the stock's move higher will continue. Others may consider such a stock as overbought, and therefore a sell candidate or one to which fresh capital should not be committed.

RELATED TERMS
  1. Overbought

    1. A situation in which the demand for a certain asset unjustifiably ...
  2. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  3. Relative Strength

    A momentum investing technique that compares the performance ...
  4. Relative Strength Index - RSI

    A technical momentum indicator that compares the magnitude of ...
  5. Momentum

    The rate of acceleration of a security's price or volume. The ...
  6. Market Value

    The price an asset would fetch in the marketplace. Market value ...
Related Articles
  1. Active Trading

    An Introduction To The Relative Strength Index

    Learn the difference between relative strength and the relative strength index, a frequently used technical analysis oscillator.
  2. Active Trading

    An Introduction To Oscillators

    Find out how this indicator may help improve the average investor's entry and exit points.
  3. Active Trading

    Relative Strength Index And Its Failure-Swing Points

    Confirm your buy and sell signals with this oscillator categorized as an overbought/oversold index.
  4. Active Trading

    Value Investing + Relative Strength = Higher Returns

    Buying value stocks that are moving higher helps investors steer clear of value traps.
  5. Trading Strategies

    What are the best technical indicators to complement the Moving Average (MA)?

    Learn about some of the common confirmation tools and techniques that traders and analysts use in conjunction with moving average indicators.
  6. Trading Strategies

    What are the best technical indicators to complement the Moving Average (MA)?

    Learn about some of the common confirmation tools and techniques that traders and analysts use in conjunction with moving average indicators.
  7. Technical Indicators

    What are the most common periods used in creating Moving Average (MA) lines?

    Learn the most commonly selected periods used by traders and market analysts in creating moving averages to overlay as technical indicators on charts.
  8. Trading Strategies

    What are the main disadvantages of using Fibonacci Retracements for trading strategies?

    Learn about the disadvantages inherent to the Fibonacci retracement, an indicator built on the Fibonacci sequence used in mathematics.
  9. Technical Indicators

    What is a common strategy traders implement when using the Moving Average Convergence Divergence (MACD)?

    Learn some common trading strategies that traders employ using the moving average convergence divergence (MACD) technical indicator.
  10. Technical Indicators

    Why is the Moving Average Convergence Divergence (MACD) important for traders and analysts?

    Take a look inside one of the most popular and widely trusted technical indicators, the moving average convergence divergence, or MACD.

You May Also Like

Hot Definitions
  1. Scarcity

    The basic economic problem that arises because people have unlimited wants but resources are limited. Because of scarcity, ...
  2. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended to provide benefits to an individual or organization. The ...
  3. Christmas Tree

    An options trading strategy that is generally achieved by purchasing one call option and selling two other call options at ...
  4. Christmas Club

    A short-term savings account that usually pays out the full account balance to its account holders once each year, right ...
  5. Boston Snow Indicator

    A market theory that states that a white Christmas in Boston will result in rising stock prices for the following year. For ...
  6. Christmas Island Dollar

    The former currency of Christmas Island, an Australian island in the Indian Ocean that was discovered on December 25, 1643. ...
Trading Center