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A guide to momentum trading and indicators
Momentum trading is a strategy that involves taking a position based on the strength of a market trend. It’s a popular way of trading in volatile markets, as the goal is to find opportunities in short-term trends. Momentum trading follows the premise that if there’s enough force behind a move, it will continue, and once that wanes, the market will reverse. It’s the idea of ‘buying high and selling higher’ – that once a trend gains enough traction, it will continue in the same direction. But it doesn’t always have to be a bullish move, it can apply to falling markets too. Like trend trading, individuals ... (full story)