Chabba Strategy para Futuros ES:
Momentum trading is a strategy where traders capitalize on assets already moving strongly in one direction, based on the principle that "assets in motio...
Momentum trading is a strategy where traders capitalize on assets already moving strongly in one direction, based on the principle that "assets in motion tend to stay in motion." This approach differs from traditional "buy low, sell high" strategies by focusing on riding established trends rather than predicting market bottoms. Key fact: Academic research by Jegadeesh and Titman (1993) documented approximately 1% average monthly excess returns from momentum strategies in equity markets, demonstrating its historical effectiveness. Price momentum is the rate of change in an asset's price over time, measuring how quickly price is moving in a particular direction. Traders use momentum to identify strong trends and potential entry points. Key fact: Momentum strategies in cryptocurrency markets have shown approximately 12% higher annual returns compared to traditional buy-and-hold approaches during trending periods. Momentum indicators are technical tools that measure the speed and strength of price movements, helping traders identify potential entry and exit points. These indicators provide valuable insights into market sentiment and trend strength.