1. What Is Momentum Investing?
Momentum, or trend following, is based on the idea that rising prices tend to keep rising and falling prices tend to keep falling. It is central to hedge-fund CTA, Commodity Trading Advisor, strategies.
2. Research Foundations
📊 Academic Research
• The guide describes momentum as documented across more than 200 years of financial markets
• Jegadeesh and Titman (1993): Significant momentum returns over 3–12 months
• The effect is described across all asset classes, including equities, bonds, commodities, and crypto
3. Momentum Indicators
- Moving-average crossover — The 50-day average above the 200-day average indicates upward momentum
- RSI — Above 50 indicates upward momentum
- ROC, Rate of Change — The return over a specified period
- ADX — Measures trend strength
4. NOONOO TRADING and Momentum
Following momentum is central to NOONOO TRADING. When it detects a strong trend, it opens a position in that direction and exits as the trend weakens.