Momentum
Momentum is the strength of movement in security’s volume or price, whether the movement is upward or downward.
Momentum investors seek for the securities in the beginning of their momentum, taking either short or long position with confidence that the trend will continue.
Because of that, timing of taking the position in securities with momentum is crucial, so this technique is advisable only for experienced traders.
| Related Terms: Relative Strength Money Flow PPO Relative Strength Index - RSI Stochastic Oscillator Upside/Downside Ratio Absolute Breadth Index Dynamic Momentum Index |