Market Momentum

The underlying determinant of a market trend which is known by a constant rise or fall in asset price.

Market momentum is a term that explains a stable price movement within a particular period. This stability may be caused by a variety of factors, but the focus is often on the continuing trend of the price. As a result, market momentums are more easily identified by market trends which directly refers to the fact that the price of a certain commodity continues to rise or fall, to the point that continued upward or downward price movement can be predicted ahead of time.

Expert traders look out for market momentums. Competently identifying these momentums allow traders to take advantage of them and make significant profits ahead of others.