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Momentum and its uses in trading

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Momentum refers to the rate of acceleration of a price. Momentum is to assume that the price of a security is more likely to stay on its course rather than to change direction. Momentum also helps identifying trendlines in technical analysis.

Momentum traders use the momentum of a stock’s price in order to take long or short position, believing the momentum will continue (upward or downward direction).

Momentum in algo-trading (With Expert advisor)

Momentum is a key factor in EA’s strategies. Identifying the momentum of a stock’s price and having the ability to react in a split of a second can make you more profit when using it as a strategy for your expert advisor.

Screenshot of a momentum as it looks inside the mt4 metatrader

momentum

taken from – stockcharts.com

A Video that explains how to do momentum trading and use momentum in trading as a strategy 

Momentum and its uses in trading

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