Momentum
The rate and strength of a price move — momentum trading rides stocks already moving powerfully in one direction.
Momentum is the tendency of strong moves to persist: stocks making new highs on heavy volume often keep going as more buyers pile in. Momentum traders buy strength rather than trying to catch bottoms, aiming to ride the trend while it lasts.
Momentum is measured with tools like rate-of-change, RSI, relative strength versus the market, and simple new-high/volume scans. It works until it doesn't — momentum names reverse hard, so exits matter as much as entries.
On StockSetups
StockSetups is built for momentum and breakout traders: a 1–99 relative-strength rating, momentum indicators on every signal, and presets like 'Intraday Momo' and '52-week Breakout' on the live tape.
Related terms
See momentum on tonight's board.
StockSetups scans the whole US market after the close and draws the patterns, levels and indicators on every chart.
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