Momentum

In financial markets, momentum refers to the speed or velocity of price changes in an asset. It is a key concept in technical analysis that suggests that an asset in motion is likely to remain in motion.

• Strong momentum is indicated by a steep slope in the price trend.
• Weakening momentum can be a sign that a trend is about to reverse.

Momentum indicators like the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) are used to measure the strength of a trend and to identify potential reversal points.