MOMENTUM

Momentum is the price "velocity" or the rate of change of a security's price. It is a leading indicator of a change in the direction of price trend. Momentum change usually precedes a change in price trend.

Momentum can also refer to a particular style of trading. Bullish momentum players buy securities that are popular, or those that they believe will become popular. As the word spreads and an equity's popularity grows, the hope is that the advance will accelerate. This idea is summarized by the phrase "the hot get hotter and the cold get colder." . . .  complete defintion in a new browser window.