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Momentum Definition

Momentum refers to the speed or strength of a price movement in a particular direction.

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What is Momentum?

Momentum indicators, such as the Relative Strength Index, help traders gauge whether a trend is strengthening or weakening.

Strong momentum is often associated with continued price movement in the current direction, at least in the near term.

Example of Momentum

A stock rising sharply on high volume over several days is displaying strong upward momentum.

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