© The Author(s), under exclusive license to APress Media, LLC, part of Springer Nature 2023
P. LiuQuantitative Trading Strategies Using Pythonhttps://doi.org/10.1007/978-1-4842-9675-2_6

6. Momentum Trading Strategy

Peng Liu1  
(1)
Singapore, Singapore
 

Momentum trading is a strategy that makes use of the strength of price movements as a basis for opening positions, either longing or shorting a set of assets. It involves buying and/or selling a selected set of assets according to the recent strength of price trends, assuming that these trends will continue in the same direction if there is enough force behind a price move. When using momentum trading, traders intend to capitalize on the force or speed of price movements to determine investment positions. ...

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