- A measure of overall market sentiment, calculated as the change in the value of a market index multiplied by the aggregate trading volume occurring within the index components.
Market momentum can be a good indicator of overall market changes which are likely to continue in the near future. It is important to understand that momentum considers not only changes in price level, but also volume. For example, if the Dow Jones Industrial Average (DJIA) was up significantly over several trading days, this price movement would be said to have more force, or momentum, if it occurred with heavy trading volume as opposed to low volume.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
Momentum investing — Momentum investing, also sometimes known as Fair Weather Investing , is a system of buying stocks or other securities that have had high returns over the past three to twelve months, and selling those that have had poor returns over the same… … Wikipedia
Market timing — is the strategy of making buy or sell decisions of financial assets (often stocks) by attempting to predict future market price movements. The prediction may be based on an outlook of market or economic conditions resulting from technical or… … Wikipedia
Market capitalization — (often market cap) is a measurement of the value of the ownership interest that shareholders hold in a business enterprise. It is equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and… … Wikipedia
Market sentiment — is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and … Wikipedia
Market manipulation — describes a deliberate attempt to interfere with the free and fair operation of the market and create artificial, false or misleading appearances with respect to the price of, or market for, a security, commodity or currency. Market… … Wikipedia
Momentum (finance) — This article is about the concept related to asset prices. For other uses of momentum in finance, see Momentum (disambiguation). In finance, momentum is the empirically observed tendency for rising asset prices to rise further, and falling prices … Wikipedia
Market trend — Statues of the two symbolic beasts of finance, the bear and the bull, in front of the Frankfurt Stock Exchange. A market trend is a putative tendency of a financial market to move in a particular direction over time. These trends are… … Wikipedia
Market anomaly — A market anomaly (or market inefficiency) is a price and/or return distortion on a financial market that seems to contradict the efficient market hypothesis. The market anomaly usually relates to: Structural factors, such as unfair… … Wikipedia
Momentum trader — Contents 1 Definition 2 Event based momentum trader 3 Technicals based momentum trader 4 See also Definition … Wikipedia
Market maker — Financial markets Public market Exchange Securities Bond market Fixed income Corporate bond Government bond Municipal bond … Wikipedia