- #4,906
- Apr 27, 2020 5:10am Apr 27, 2020 5:10am
- Joined Apr 2019 | Status: Trader | 1,996 Posts | Online Now
- #4,911
- Apr 27, 2020 4:26pm Apr 27, 2020 4:26pm
- Joined Jul 2009 | Status: Trade What U See Not What You Think | 1,759 Posts
I would like to introduce a concept that I have not talked about in this thread before.
It's about Momentum. Some people believe that price is the only leading indicator.
In my opinion, Momentum is the only true leading indicator that you can add to a chart.
Now, I am sure that lots of traders will disagree with me. They are entitled to their opinions just like I am entitled to mine.
Virtually all of the chart indicators that we use in Forex trading are based solely off of price. And, for that matter, only after the fact.
They can only indicate something based off of what price has already done.
But that's not true with Momentum. Momentum is based on market strength.
The idea of Momentum is: the stronger a move is, the more likely it is to keep going in the same direction.
As the strength of a move weakens, so does the Momentum, but Momentum gives an early warning of the move weakening.
Anyway, I'll get to the point of this post.
Below is a chart that shows a Momentum indicator in the lowest window, and the smTMMS Oscillator and yellow line in the next to lowest window.
I have paired up the crossovers in the two lower windows. Notice the red boxes with the green vertical lines in them.
Both indicators show the strength of the up and down moves price is making.
What I am trying to get you to focus on is that when the Yellow Line crosses the DimGray line of the smTMMS Oscillator, the momentum is changing and price may be about to change direction. But, you likely will need even more confirmation of that by looking at what the other indicators are doing also.
It doesn't always mean that price will reverse, but it does call to your attention that the move may be coming to an end.
We can discuss this more over time as the traders here start to use and understand Momentum's importance in making trading decisions.
It's about Momentum. Some people believe that price is the only leading indicator.
In my opinion, Momentum is the only true leading indicator that you can add to a chart.
Now, I am sure that lots of traders will disagree with me. They are entitled to their opinions just like I am entitled to mine.
Virtually all of the chart indicators that we use in Forex trading are based solely off of price. And, for that matter, only after the fact.
They can only indicate something based off of what price has already done.
But that's not true with Momentum. Momentum is based on market strength.
The idea of Momentum is: the stronger a move is, the more likely it is to keep going in the same direction.
As the strength of a move weakens, so does the Momentum, but Momentum gives an early warning of the move weakening.
Anyway, I'll get to the point of this post.
Below is a chart that shows a Momentum indicator in the lowest window, and the smTMMS Oscillator and yellow line in the next to lowest window.
I have paired up the crossovers in the two lower windows. Notice the red boxes with the green vertical lines in them.
Both indicators show the strength of the up and down moves price is making.
What I am trying to get you to focus on is that when the Yellow Line crosses the DimGray line of the smTMMS Oscillator, the momentum is changing and price may be about to change direction. But, you likely will need even more confirmation of that by looking at what the other indicators are doing also.
It doesn't always mean that price will reverse, but it does call to your attention that the move may be coming to an end.
We can discuss this more over time as the traders here start to use and understand Momentum's importance in making trading decisions.
Always a Student, Never a Master - Emulate What Works
- #4,918
- Apr 28, 2020 12:14am Apr 28, 2020 12:14am
[quote = Noors; 12898377] {quote} Llegué unas velas tarde al intercambio, recibí mi señal para ingresar en la línea vertical azul, la apertura de esa vela debería haber sido mi entrada, también mi TP y SL son TP dura y SL. Los configuré como RH para SL, 2 velas de regreso, pero los uso para paradas difíciles, la mayoría de las veces saldré antes de que se acerque a la parada, porque estoy intercambiando por impulso, no quiero dejo mucho espacio para que el mercado se mueva en mi contra NI quiero darle tiempo, si no se mueve pronto me voy. Para el...
