Technical analysis · Glossary
Momentum
The speed and strength of a price move.
Definition and explanation
Momentum describes the rate at which price changes over a period. High momentum can coincide with large, rapid moves and elevated volatility. Momentum can reverse, and a strong recent move does not guarantee continuation; the strength of a trend also depends on context and liquidity.
Example
A sharp move over a short window indicates high momentum on that window, but the direction can change as conditions evolve.
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