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Re: Momentum & Velocity



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The definition of Momentum in Physics / Mechanics:
Mass * Velocity:   P = M*V ( see math dictionary ).

The definition of Momentum in Trading:
1. Rate of Acceleration of price  - means acceleration / deceleration.
( see dictionary of Financial terms )
Second derivative of price over time, first being velocity.
2. . Buying / Selling Momentum - acceleration /deceleration of
buying or selling. Sometimes called inertia  buying or selling.
No defined mathematical formula for this one.

In Technical Analysis  is defined mathematically as P - P[ length ].
( see Momentum function in Tradestation ). I am skeptical
about this one.

Momentum is more of a word then a mathematical definition
in trading and can have meanings as price momentum,
buying momentum, selling momentum and have such
synonyms  as acceleration,  inertia, build up, etc.
Val.