> For the complete documentation index, see [llms.txt](https://quanthiveai.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://quanthiveai.gitbook.io/docs/tradingtools/alpha-traders-flow-signals/momentum.md).

# Momentum

<figure><img src="https://i.ibb.co/JR0c0n02/momentum.png" alt="" width="563"><figcaption></figcaption></figure>

**Momentum** is a key trading indicator on QuantHive that measures the **interest trajectory** of Alpha Traders in a specific token over time. It provides insight into whether the enthusiasm around a token is **increasing or waning**, helping traders anticipate potential price moves based on shifts in trading volume dynamics.

## **How Momentum Works**

Momentum compares **recent short-term trading volume** against **longer-term average volume** among Alpha Traders:

* When **short-term volume exceeds long-term volume**, Momentum is **rising**, indicating growing trader interest and hype.
* When **short-term volume falls below long-term volume**, Momentum is **declining**, signaling waning enthusiasm or potential profit-taking.

A rising Momentum score suggests the token is gaining attention and could be poised for upward price action, while a declining score may warn of weakening demand or impending pullbacks.

## **Why Momentum Matters**

* **Early Signal of Trend Changes:** Momentum can alert traders to shifts before price changes become obvious.
* **Filters Noise:** By focusing on volume trends of top alpha wallets, Momentum reflects meaningful market sentiment rather than random spikes.
* **Complements TPI:** Used together with the Trader Position Index (TPI), Momentum gives a fuller picture of both **direction** and **strength** of market moves.

Momentum is your gauge for the pulse of the market’s interest, showing you when top alpha traders are heating up or cooling off on a token. Harness this insight to ride trends with confidence or spot early exits before sentiment turns.


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