Momentum
Momentum is the speed and strength of a stock's price movement in a particular direction. Think of it like a rolling ball—once it's moving, it tends to keep moving that way until something stops it. You'll hear traders talk about momentum when analyzing price charts and deciding whether to buy or sell. It matters because stocks with strong upward momentum often keep climbing (at least in the short term), while those losing momentum may be about to reverse. For example, if TechCorp stock has been rising steadily for weeks with increasing trading volume, traders might say it has strong bullish momentum and expect it to continue higher—though that's never guaranteed.
Updated August 1, 2026.