Momentum Trading

Momentum Trading is an investment strategy that focuses on prices, trends, volume and some fundamental data. As with trend followers, momentum traders buy when the security price increases and sell when it decreases, however they also use earnings estimates data, earnings momentum and some fundamental analysis ratios in their decision process.
In momentum trading, traders look first at fundamental data like the earnings momentum. They want to invest in stocks whose earnings are increasing. They also want to invest in stocks whose prices are increasing.