Momentum is a word derived from momentum in physics, which represents the inertia and intensity of an object when it moves. In the fields of financial markets and machine learning, momentum is usually translated into momentum, and different fields may choose different translations according to specific contexts. For example, in the field of psychology, momentum can be converted into potential energy or trend.
I. Financial markets
Momentum is a technical analysis method, which is used to predict the future price trend according to the change trend of stock price in the past period of time. By calculating the average price change rate or the weighted value of the index, it gets the average influence of the historical price trend, and then uses this average influence as the basis for forecasting the future price trend.
Momentum index is mainly used in stock, futures and other trading markets, and is a commonly used index in technical analysis.
Second, the field of machine learning.
Momentum usually refers to a variant of stochastic gradient descent algorithm-momentum gradient descent algorithm. Random gradient descent algorithm is a commonly used parameter optimization algorithm, which is widely used in the training of neural networks in deep learning, but it may produce shocks when dealing with some long and detailed data, which may affect the training effect.
Momentum gradient descent algorithm solves this problem by introducing the concept of momentum, which makes the updating direction more stable and the training easier to converge.
Momentum has different translations in different fields, but it is usually related to the meaning of "inertia and power" in physics. In the field of financial markets, momentum is a technical analysis method used to predict price trends.
In the field of machine learning, momentum refers to an improved stochastic gradient descent algorithm, which is used in the training process of deep learning models such as neural networks to improve learning efficiency by increasing motivation.
No matter in which field, understanding momentum needs to grasp its physical meaning, and at the same time, it needs to be deeply understood and mastered in combination with specific application scenarios.