Momentum

The rate of acceleration of a security's price or volume. The idea of momentum in securities is that their price is more likely to keep moving in the same direction than to change directions. In technical analysis, momentum is considered an oscillator and is used to help identify trendlines.

Once a momentum trader sees acceleration in a stock's price, earnings or revenues, the trader will often take a long or short position in the stock in the hope that its momentum will continue in either an upward or downward direction. This strategy relies on short-term movements in a stock’s price rather than fundamental value, and it is not recommended for novices.


Investment dictionary. . 2012.

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  • Momentum — (sächlich, lateinisch mōmentum, „(Dauer einer) Bewegung“) steht für: einen Film aus dem Jahre 2003, siehe Momentum (Film) ein Verfahren aus der Chartanalyse, siehe Momentum (Chartanalyse) die Investmentgesellschaft Momentum, die im Jahr 2002 von… …   Deutsch Wikipedia

  • Momentum — Mo*men tum, n.; pl. L. {Momenta}, F. {Momentums}. [L. See {Moment}.] 1. (Mech.) The quantity of motion in a moving body, being always proportioned to the quantity of matter multiplied by the velocity; impetus. [1913 Webster] 2. Essential element …   The Collaborative International Dictionary of English

  • momentum — (n.) 1690s, scientific use in mechanics, quantity of motion of a moving body, from L. momentum movement, moving power (see MOMENT (Cf. moment)). Figurative use dates from 1782 …   Etymology dictionary

  • momentum — [mō men′təm, məmen′təm] n. pl. momentums or momenta [mō men′tə] [ModL < L: see MOMENT] 1. the impetus of a moving object 2. strength or force that keeps growing [a campaign that gained momentum] 3. Physics Mech. the product of the mass of a… …   English World dictionary

  • momentum — I index headway, impetus II index importance, stress (strain) Burton s Legal Thesaurus …   Law dictionary

  • momentum — impetus, *speed, velocity, pace, headway …   New Dictionary of Synonyms

  • momentum — The plural, though not often needed, is momenta, or informally momentums …   Modern English usage

  • momentum — [n] impetus, push drive, energy, force, impulse, power, propulsion, strength, thrust; concepts 641,712 …   New thesaurus

  • momentum — ► NOUN (pl. momenta) 1) impetus gained by movement or progress. 2) Physics the quantity of motion of a moving body, equal to the product of its mass and velocity. ORIGIN Latin movimentum, from movere to move …   English terms dictionary

  • Momentum — This article is about momentum in physics. For other uses, see Momentum (disambiguation). Classical mechanics Newton s Second Law …   Wikipedia

  • momentum — /moh men teuhm/, n., pl. momenta / teuh/, momentums. 1. force or speed of movement; impetus, as of a physical object or course of events: The car gained momentum going downhill. Her career lost momentum after two unsuccessful films. 2. Mech. a… …   Universalium

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