Momentum(redirected from linear momentum)
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Related to linear momentum: angular momentum
The amount of acceleration of an economic, price, or volume movement. A trader that follows a movement strategy will purchase stocks that have recently risen in price.
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The likelihood of a price movement to sustain itself. For example, if a price for a security begins to increase, momentum is its likelihood to continue to increase. There are various ways to measure momentum, but most involve volume in some way. Generally speaking, a gain or loss on high trading volume tends to indicate that the movement has momentum and is likely to continue.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
The tendency of a security to continue movement in a single direction. Momentum is the underlying factor in trend analysis of stock prices.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.