What Exactly Does Market Momentum Mean
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Market momentum is the ability of a market to sustain an increase or decrease in prices. In technical analysis, momentum is considered an oscillator and is used to help identify trend lines. With that being said, we can further conclude that high momentum means that the price of the asset is likely to move sharply in the direction of the trend. Thus, we can make simple illustrations:
1. Bullish Trend + High Momentum is likely to bring sharp Bullish Move.
2. Bearish Trend + High Momentum is likely to bring sharp Bearish Move.
Anticipating trends is one of the most common trading strategies that most traders use. When combined with other strategies it can become a successful rig.
Get Your Free Membership Now!
Market momentum is the ability of a market to sustain an increase or decrease in prices. In technical analysis, momentum is considered an oscillator and is used to help identify trend lines. With that being said, we can further conclude that high momentum means that the price of the asset is likely to move sharply in the direction of the trend. Thus, we can make simple illustrations:
1. Bullish Trend + High Momentum is likely to bring sharp Bullish Move.
2. Bearish Trend + High Momentum is likely to bring sharp Bearish Move.
Anticipating trends is one of the most common trading strategies that most traders use. When combined with other strategies it can become a successful rig.
