BRVX Glossary · Momentum trading · Updated September 25, 2026
Momentum trading is a strategy of buying assets that have been rising strongly and selling or shorting those that have been falling, on the premise that strong moves tend to continue for a while. Academic studies since Jegadeesh and Titman in 1993 have found momentum effects across stocks and other markets.
On this page
Common tools
- Rate of change: the percentage move over a lookback period.
- RSI and MACD: to judge whether momentum is building or fading.
- Volume: strong moves on rising volume are preferred.
- Breakouts: new highs or lows as entry triggers.
Short-term versus long-term momentum
Classic research measures momentum over 3–12 months in stocks. Short-term traders apply the same idea over hours or days, buying breakouts and bull flags. The shorter the horizon, the more fees and slippage eat into the edge.
How momentum fails
Momentum works until it reverses sharply — known as a momentum crash. In 2009, the strongest stocks of the prior year fell while the weakest rebounded, and momentum portfolios lost heavily in months. Stops and exits on fading momentum are part of the strategy, not an add-on.
On BRVX
Momentum can be traded long or short on BRVX across 41 markets. Fees of 0.1% to open and 0.1% to close on BTC/USDT, plus funding every hour, set how fast a momentum trade has to pay off.
Questions about Momentum trading
Does momentum trading work?
Momentum effects are well documented, but they come with sharp reversals and depend on costs.
What is the difference between momentum and trend following?
They overlap; momentum ranks recent strength, trend following rides direction with moving averages or breakouts.
What timeframe do momentum traders use?
From minutes to months — the logic is the same, the costs differ.
Momentum trading: next steps on BRVX
Momentum trading on SAMSUNG/USDT: 0.1% a round trip in fees, 0.0046% per hour funding on a long, about 1.1 USDT a day per 1,000 USDT.
Read next: Mean reversion, MACD and Bull flag.
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