The term market momentum refers to the ability of a particular market to maintain a continuous increase or decrease in price within a certain timeframe. Essentially, market momentum is what creates a market trend. Since the market momentum is a result of the variations in the market price of an asset, it also reflects the current market sentiment.
However, market momentum is not only related to the price changes but also to the trading volume. This means that high volumes of trading activity indicates a stronger market trend and, thus, a stronger and more reliable market momentum.
A general equation that is often used to calculate or define the market momentum is: