Momentum
Technical analysisThe rate at which price is changing, as distinct from its direction.
In plain terms
Price can still rise while momentum fades — that gap is what divergence measures.
1678 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 8 terms
Read the full lesson →
Momentum anomaly
Technical analysisThe documented tendency for recent winners to continue outperforming over 6–12 month horizons.
In plain terms
Persistent across markets and decades, with no comfortable explanation. It is a statistical tilt, not a prediction about any one stock.
Momentum factor
Technical analysisA tilt towards stocks that have risen most over the past 6–12 months.
In plain terms
The best-documented factor and the one with no comfortable explanation. It fails hardest at inflection points, by construction.
Trend-following
Technical analysisAlso called: Momentum trading
A style that enters in the direction of an established trend and stays until it reverses, accepting many small losses in ranges in exchange for capturing the occasional large move.
In plain terms
Ride the trend, cut the chop. You lose small often and win big rarely — and the maths still works.
Factor investing
Risk & psychologySystematically buying characteristics — momentum, value, quality — rather than picking stocks.
In plain terms
Mechanical by design. Overriding the rule is where the edge disappears.
Money Flow Index
Technical analysisAlso called: MFI
A momentum oscillator that weights price changes by the rupee value traded, bounded 0 to 100.
In plain terms
RSI with the money attached. Where RSI asks whether it went up, this asks whether anyone paid for it to.
Market cap weighting
Market basicsWeighting index constituents by their free-float market capitalisation.
In plain terms
An unlabelled momentum strategy — it automatically holds more of whatever has risen.
Oversold
Technical analysisA low oscillator reading, conventionally RSI below 30, indicating that recent moves have been strongly one-sided to the downside.
In plain terms
It describes momentum, not value. In a strong downtrend an oscillator can print oversold all the way down, and bounces top out near 55–60 rather than 70.