Glossary / Price action

Momentum

An educational concept. Not a signal, not a strategy, and not a trade Josh has taken.

A flowing ice-blue glass ribbon rising and dipping through empty space, an unlabeled picture of price in motion.
Illustration of the idea, not a market chart and not a result.

The speed and strength of a move: candle size, how far closes progress, and how little price pulls back.

How traders use it: Rising momentum supports continuation ideas; fading momentum near a level (smaller bodies, longer wicks) warns that a move is tiring.

Common mistake: Buying because momentum is strong right after the largest candle, with the stop far away.

Related: Impulse vs correction · Exhaustion · Compression (consolidation)

See this term in the full glossary · All terms

Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.