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Momentum in finance refers to the rate of change in the price of a security or asset over a specific period of time. It is a technical analysis tool that is used to identify the strength and direction of a trend in the market. Investors and traders may use momentum indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), to determine whether a security or asset is overbought or oversold, and to help identify potential buy or sell signals. High momentum is often seen as a positive indicator, as it suggests that an asset’s price is trending in a particular direction and may continue to do so in the future.

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