With Momentum-Trading you bet on the trend! One assumes that a prevailing trend on the market will continue until there are first signs of an end. Accordingly, every downturn can be bought up and every upswing sold off or vice versa. The important thing here is that the traders notice in time that the trend is turning. Otherwise, this strategy can quickly turn negative.

Here it is advisable not to buy on the absolute highs and lows, but to buy and sell at safe prices.

Important indicators for the classification of the development of trends are the so-called moving-averages, i.e. the moving averages of a certain observation period. A trend is considered strong if it is clearly above or below the moving average.