# Momentum (speed)

- Canonical URL: https://www.gerhardmerk.de/momentum-speed
- Post ID: 587710
- Modified: 2023-07-25T21:03:45+00:00
- Language: en

## Definition

Another term for the quantity of movement. - Closer to the measure for the speed - also called tractive force - of a price movement. The benchmark is the current price minus the price x days ago (the difference between the closing price today and the close x days ago). A momentum above zero, shows that the current price is higher than x days ago; a momentum with a negative sign means that the current price is lower than x days ago - Also said for the relationship between favorable news about a company and the increase in prices (when the positive news about a company's share is reflected only gradually, a pattern of ever increasing share price forms. This pattern is called a stock-price momentum, since positive initial returns are followed by other positive returns in the mid-term). - See Momentum Thesis. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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