» Order
Forex Course » Member
Login » Contact
|
Momentum Indicator |
|
|
Sound familiar? You have spent years surfing the 'Net, and studying books and charts in search of currency trading strategies or forex trading strategies. All you really want is the 'Holy Grail' of entry techniques. You usually end up adding one indicator on top of another, switching from one guru to the next, until you are so confused and unsure of your entry system that you are unable to make entry decisions and stay organized. You get so distracted and frustrated that you quit watching the markets all together! Shows you how FAST you can make money when the BIG DOGS make their move - by shamelessly copying this winning group . Even I am STILL surprised by how much power they have over the currency markets. Momentum IndicatorTrend-following approaches have their limitations. They lag price movement, by indicating a change in trend after the fact. Also, whipsaw effects can arise, where prices are in trading ranges. Enter the momentum indicator, a perfect addition to your currency trading strategies (a.k.a. forex trading strategies). It is used to foretell a trend change and price reversal at support and resistance levels within a trading range. An oscillator, on the other hand, comes from a family of indicators that identify a tradable as either overbought or oversold. The momentum indicator, as originally presented by J. Welles Wilder, comes in different flavors, two of which are the momentum indicator and the relative strength index (RSI) The typical 10-day momentum indicator, plotted by subtracting the closing price 10 days ago from the current closing price, oscillates around a neutral zero line. This indicator and RSI can both be used to enter and exit a trade. Using the momentum indicator, you would simply go long when it rises above the zero line, and go short when it drops below that line. Some charting packages demarcate the line differently, using another scale, such as 99.5 and 100.1 (or thereabouts) on either side of the line. But, you get the point. There is a waterline there, and the same principles apply. You also want to watch for when this indicator turns and changes direction. Also, inspect the angle of that transition. It is generally accepted good trading practice to look for confirmation
of such signals by inspecting other indicators, patterns, and trendlines,
looking for divergences between indicators and price action, and observing
price behavior in and around pivot points (i.e., successful penetration
thereof). When it comes to currency trading strategies or forex trading strategies, you will find a whole lot more in my internationally acclaimed course at ... "Free" personal consultation with each purchase "No-Games, No-Strings" Money Back Guarantee Even experienced traders know they have more to learn. No matter what currency you're in, whether your preference is euros, yen, the franc or the pound, whether you're a beginner who needs a concrete plan or a seasoned trader, or simply looking for information on how to use the right data, you've come to the right place. Most traders who come to us just want to know how to trade currencies against the 'dumb money,' and ... How To Make A Full-Time Income Trading Less Than Part Time Find out what a blind, three-legged dog with
a note tied
|
| Home
| About Peter | Forex
| Pivot Trading System
Overview | Video Forex Course
| Order Forex Course | Testimonials Login | Order | Contact | Affiliates | Links © Copyright 2004 ForexMentor.com. All rights reserved. disclaimer - privacy - guarantee |
More
Testimonials
