Glossary

Momentum

The tendency of assets that have performed well (or poorly) recently to keep doing so for a time — a well-documented pattern used by trend and momentum strategies.

Momentum is the empirical tendency for recent relative performance to persist: winners tend to keep winning and losers to keep losing, on average, over intermediate horizons. It is one of the most studied patterns in markets.

Momentum is not a certainty — it holds on average and breaks at sharp reversals, arriving late when a trend turns. Rules that read momentum pair it with other dimensions, such as trend and coherence, precisely because no single signal is reliable on its own.

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