Momentum measures how strongly and quickly price is moving in one direction. Strong momentum suggests a move may continue, while fading momentum can warn of a stall or reversal. Indicators such as RSI and MACD are built to gauge it.
Forex Term
Momentum
The speed and strength behind a price move.
Example
A sharp, sustained rally on heavy participation shows strong upward momentum.
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Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.