Momentum trading involves capitalizing on the strength of market trends. Traders identify stocks or indices showing strong price movement and ride the trend until signs of reversal appear. Techniques include using indicators like MACD, RSI, Moving Averages, and ADX to confirm momentum. Volume spikes, breakout patterns, and news catalysts often trigger momentum trades. Traders typically look for consolidation zones followed by breakout candles with high volume. Entry points are usually after a breakout, with stop-losses placed just below the consolidation range. Exit strategies involve trailing stops or exiting when momentum fades. Momentum trading suits volatile assets and short-to-medium timeframes. Risk management is crucial as sharp reversals can wipe out profits. Tools like TradingView or charting software help spot momentum setups. Intraday and swing traders commonly apply these strategies. Successful momentum trading depends on quick execution, discipline in exiting trades, and understanding how market sentiment drives short-term price movement.