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Market Momentum

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Market Momentum
A measure of a security's or market's movements, taking into account both price changes and trading volume. Market momentum is not an exact measurement, but a subjective calculation of market sentiment, taking those two factors into account. Market momentum may be positive or negative, and it may be fast or slow. For example, if an index rises quickly on heavy trading volume, it is said to have a great deal of market momentum. However, if it rises only slowly on heavy trading volume, it has less market momentum. See also: Earnings momentum, Momentum investing.


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