“The trend is your friend” is a memorable Martin Zweig stock market quote.  More instructive aphorisms might be:

"The trend is your friend until it bends." (thanks to Investopedia: https://www.investopedia.com/terms/p/pattern.asp), or:

“The trend is your friend, until the end when it bends.” (thanks to How The Market Works: https://education.howthemarketworks.com/the-trend-is-your-friend/).

But what exactly is a trend, and how is it related to the market concept of “Momentum,” one of the most widely discussed and researched investment strategies?

The "Quantpedia.com Explains" trading strategy video series continues with “Momentum Strategies” by examining the various ways to exploit  this anomaly.

Watch the video for more:
https://youtu.be/4jPakaku1i8

 Check out the Quantpedia article, “Momentum Asset Allocation Strategy,” which examines both trend-following and relative strength techniques, including a summary and links to the various research papers here: https://quantpedia.com/strategies/asset-class-momentum-rotational-system/

Read the Quantpedia “Sector Momentum – Rotational System” article, including a summary of the combination of two simple strategies, momentum and rotational trading strategies, and links to the original research paper here: https://quantpedia.com/strategies/sector-momentum-rotational-system/

Check out the Quantpedia Explains Trading Strategies video series as it evolves here: https://quantpedia.com/quantpedia-explains-trading-strategies/

Via: Changing Market Strategies LLC
https://lnkd.in/dKyiRDz2