Momentum vs. Volatility

Factor	Momentum (Trend Strength & Speed)	Volatility (Price Fluctuations & Uncertainty)
Definition	Measures how fast and strong a price moves in one direction.	Measures how much and how quickly price fluctuates up and down.
Direction	Moves steadily in one direction (up or down).	Moves both up and down unpredictably.
Market Type	Best in trending markets.	Common in choppy or uncertain markets.
Risk Level	Lower risk if trend is strong and stable.	Higher risk due to sharp price swings.
Effect on Trading	Used for trend-following strategies (buy in uptrend, sell in downtrend).	Helps in risk management, stop-loss setting, and options pricing.
Indicators Used	RSI, MACD, Moving Averages.	Bollinger Bands, ATR, VIX.
Best for	Swing traders, trend traders, breakout traders.	Day traders, scalpers, options traders.
Stock Example	A stock rising from ₹500 to ₹600 in 2 days with strong trend.	A stock jumping from ₹1000 to ₹1200, then falling to ₹900 in a day.