Definition
The speed and strength of a price move: how fast price is changing, not just which way.
The story
Two markets can both be up 2% this week, one in a steady climb, the other in a sudden burst on Friday. The burst has more momentum. Indicators like RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are built to measure it, and traders watch whether momentum is building or fading as a move goes on.
Why you'll see it
Coverage often describes rallies and sell-offs as "gaining" or "losing momentum."
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms