Stock price momentum is a term used to describe the rate at which a stock price increases or decreases over a given period. It is often measured by calculating the change in a stock’s price over a set time frame or price range, such as a month or a year, and comparing it to the price change over previous periods. Positive momentum refers to a stock’s price increasing at an accelerating rate, while negative momentum refers to a stock’s price decreasing at an accelerating rate. Momentum traders may use this information to identify trends in a stock’s price and make trading decisions based on those trends.
