A stock has momentum when it doesn't need any help from a dip (shit) to continue in its current direction.
Think about what's happening in the order book where price has not yet traded. And that is how momo precedes price. I'll also add you should be able to see by looking left where the momo begins.
%% As you implied, it does not. Momentum is price speedometer. It may get [lead,LOL ] one to get out of a trade waaaaaay to early ,LOL. So if one loves early indicators ,lead on , with momentum. IBD [ Investors Business Daily] newspaper uses them on futures charts, so some may like that lagging.........
I don't think I don't think the phrase 'momo precedes price' is referring to the order book. Just to technical indicators, that are based on last traded price.
Ummmmm -- if I follow you here, you're recommending a book that wouldn't work for you, based on dismissing volume as being the other half of every trade besides price. Ehhhhhh. Errrr-ummmmmm. Uhhhh. No. Any transaction is price x volume. You ignore either at your peril. Period.
Wykoff (1873-1934) is widely used by a number of market wizards and still works today with astonishing results. Wykoff saw large volume as the catalyst for equities to stop or go at key areas - like breaking out of ranges. This does not apply to futures - at least not nearly as much.
Momentum applied to indicators to anticipate future price movement is hogwash. Traders don't enter positions when the market has momentum. Thus there can be but one other market state that has occurred. That area is where you want to see current momentum to enter trades.
%% Good points; + plenty of good moves with average volume, IBD like$ 50 day average volume as a stock helper............................................................................
Agreed, it's the way I was taught and I have never paid any attention to volume whatsoever. As long as you're trading during normal hours, the volume being 1/2x or 2x normal shouldn't matter. Of course, I'm sure if you're trading massive size, it might begin to matter more in terms of slippage.