Momentum
The rate of acceleration of a stock's price — a measure of how quickly and strongly the price is moving in a given direction.
Explained Simply
Momentum trading is based on the observation that stocks that have been rising tend to continue rising, and falling stocks tend to continue falling. This persistence exists because institutions take days/weeks to build positions, trend-following algorithms amplify moves, and behavioral biases (anchoring, herding) sustain trends. Academic research confirms momentum works across markets and timeframes (the "momentum factor").
How Tradewink Uses Momentum
Momentum is the foundation of our breakout signals and the first factor in our multi-factor scoring system. The AI measures momentum across multiple timeframes (1-day, 5-day, 20-day, 60-day) and uses relative momentum (vs. sector and market) to identify the strongest movers. Intraday momentum scanning runs every 60 seconds during market hours.
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See Momentum in action
Tradewink uses momentum as part of its AI trading signal pipeline. Start getting signals that use this concept to find real opportunities.