If you are going to trade trends, no matter what the time frame, you are likely to encounter three major problems: false starts, early shakeouts and ...
In its simplest terms, momentum refers to buying stocks which exhibit past over-performance. Eugene Fama, the father of the efficient market hypothesis, refers to momentum as "the premier unexplained anomaly".
Dr Bruce Vanstone summarizes the key characteristics of investing using momentum based approaches and discusses some approaches to managing risk in momentum models and the benefits investors can expect when investing with rules-based funds.