Momentum and its uses in trading
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.