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Price Momentum Loss

Definition

Price momentum loss indicates a decrease in the rate at which an asset’s price is moving in a particular direction. This deceleration suggests that the buying or selling pressure driving the current price trend is weakening. For an uptrend, it means buyers are becoming less aggressive, while for a downtrend, sellers are losing conviction. Loss of momentum often precedes a price consolidation, a trend reversal, or a period of increased volatility as market forces rebalance.