Momentum

Alludes to a company's technical price momentum or fundamental earnings momentum. Companies with strong momentum have prices and earnings that are going up, while companies with weak momentum have prices and earnings that are going down, or going no place.
Critically, all momentum is estimated at the margin, so a company with high momentum must advance to keep up with its place, while a company with weak momentum can just settle to escape the doghouse.

Highlights

• Momentum trading thusly portrays a crowding strategy, following others; yet price trends are never guaranteed ever again.
• Momentum, finance, alludes to the capacity at a cost trend to support itself going ahead.
• Momentum investing is a trading strategy where investors buy securities that are rising and sell them when they hope to have crested.
• Strong momentum can go on in a vertical or downward trend, which can be confirmed by changes in trading volume and other technical indicators.