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Technical Analysis

Momentum

The rate of acceleration in a security's price or volume.

In depth

Momentum strategies buy strong performers and short weak ones — empirically one of the most persistent factor anomalies in finance. Risk: momentum can reverse violently in market shifts (e.g., 2009 momentum crash).

Frequently asked about Momentum

What is Momentum?

The rate of acceleration in a security's price or volume. Momentum strategies buy strong performers and short weak ones — empirically one of the most persistent factor anomalies in finance. Risk: momentum can reverse violently in market shifts (e.g., 2009 momentum crash).

Why does Momentum matter for investors?

In technical analysis, Momentum is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.

How is Momentum used in practice?

Momentum strategies buy strong performers and short weak ones — empirically one of the most persistent factor anomalies in finance. Risk: momentum can reverse violently in market shifts (e.g., 2009 momentum crash)..

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