Momentum describes how strong and persistent a price move is. Instead of asking whether an asset is cheap or expensive, momentum focuses on direction and speed.
If prices keep making higher highs, momentum is strong. When momentum fades, trends often slow down or reverse. Momentum is about following movement, not predicting value.
Momentum explains why trends can last longer than expected. Strong moves attract attention, capital, and follow-through buying.
At the same time, momentum increases risk. When it breaks, reversals can be fast, especially in crowded trades driven by market sentiment rather than fundamentals.
A common mistake is entering too late, when most of the move has already happened. Late entries often carry poor risk-reward.
Another error is assuming momentum replaces fundamentals. Momentum works best as a timing tool, not a long-term investment thesis.
On Stoxcraft, momentum is visualized on Stoxcards through the TrendMeter, which aggregates multiple trend-related indicators into a clear signal.
Momentum also appears in stock news and is referenced in Academy content explaining trend, market sentiment, and how price behavior evolves during hype-driven and fear-driven phases.
