A method known as momentum investing looks to profit from the continuation of an existing market trend. Investors use this trading method to purchase stocks that are already rising and try to sell them when they appear to have reached their highs and are in extremely overbought conditions. In the world of markets, momentum is the ability of a price trend to continue for expended periods of time, with little to no pullback. Every small pullback in an opportunity for the bulls to take the price even higher.
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