Trading Strategies

Momentum

Definition

What is Momentum?

The tendency of assets with strong recent performance to continue outperforming for a period.

Example in practice

A momentum strategy buys shares making sustained relative gains.

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A persistent direction in price or market movement.

A pattern of generally rising prices, often marked by higher highs and higher lows.

A pattern of generally falling prices, often marked by lower highs and lower lows.

The evaluation of economic, industry, company, and financial information to estimate an investment's value.

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