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Analysis

Momentum — definition & meaning

The speed and strength behind a price move.

Momentum measures how forcefully price is moving in a direction. Strong momentum suggests a move has energy behind it; weakening momentum can warn that it is running out of steam.

Momentum indicators (RSI, MACD, stochastic) try to quantify this. Momentum traders aim to ride strong moves, accepting that catching turning points is hard.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

Related terms

Relative strength index (RSI)
A momentum oscillator from 0–100 gauging overbought and oversold conditions.
MACD
A trend-and-momentum indicator built from two moving averages.
Divergence
When price and an indicator move in opposite directions.
Trend
The general direction a market is moving over time.
Volatility
How much and how quickly a price moves over time.
Volume
The number of units traded over a period — a gauge of activity.

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