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<p id="isPasted">Momentum in trading refers to the speed and strength of an asset's price movement in a specific direction. It fundamentally shapes how traders time their entries and exits, shifting the focus from "buying low" to "buying high and selling higher". </p><p><strong>Core Effects of Momentum on Trades</strong></p><p>Trend Persistence: Momentum is based on the principle that a price in motion tends to stay in motion until a significant reversal force acts upon it. Traders use this to "ride the wave" of established trends.</p><p><strong>Trade Timing:</strong></p><ul><li>Entry: Traders enter when momentum is accelerating, such as during a price breakout with high volume. …</li></ul>
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