MARKET MOMENTUM

The concept of Market Momentum pertains to the capability of a certain market to maintain a steady increase or decrease in price within a specific duration of time. Market Momentum is what produces a market trend. Given that the market momentum results from the varying prices of an asset in the market, it effectively reflects the present market sentiment.

As this is the case, traders and analysts can make use of Market Momentum in Technical Analysis. This helps them in identifying trading opportunities. These may arise within bullish of bearish trends or during reversal points. 

It must be noted however that Market Momentum is not just related to the price changes, but to the trading volume as well. What this says is that high volumes of trading activity are reflective of stronger market trend and therefore sturdier and higher market momentum reliability.

While you were away, new posts appeared on our blog.