This strategy looks to capture gains by riding "hot" stocks and selling "cold" ones. To participate in momentum investing, a trader will take a long position in an asset, which has shown an upward trending price, or short sell a security that has been in a downtrend. The basic idea is that once a trend is established, it is more likely to continue in that direction than to move against the trend. For example, one may consider taking a long position when the current price is greater than the moving average in a window, and a short position when the current price is less than the moving average in a window.