Momentum

When investing with momentum strategy you buy companies with rising prices and bet that their prices continue going up. Momentum strategy is based on technical analysis to select “trending” stocks which tend to continue to rise.

Investment strategies based on momentum are polarizing investment professionals. While supporters of passive investment strategies argue that past information can not be used to predict the future, momentum advocates claim that investors tend to react based on certain patterns and that investors can take advantage of other people's behavior and psychological biases.