Momentum (speed)

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.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
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Zitieren

Merk, G. (Hrsg.): „Momentum (speed)“. In: Finanz- und Wirtschaftslexikon. https://www.gerhardmerk.de/momentum-speed/ (Stand: 25.07.2023).

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