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Momentum

Market behavior where prices tend to continue moving in the same direction due to prevailing trading sentiment.

Momentum refers to the tendency of prices to continue moving in the same direction over time. It is a core concept in technical and quantitative trading.

In oil markets, momentum can be driven by inventory trends, macroeconomic data, or geopolitical developments. Strong momentum often attracts speculative flows.

Momentum-based strategies seek to enter trades aligned with prevailing trends. These strategies can reinforce price moves.

However, momentum can reverse abruptly, particularly around news events, making risk controls essential.

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