Alexander Elder always preferred trade in the direction of strong movement therefore we will use only trend characteristics of the Momentum indicator. The first signal which shall draw attention of the trader is the crossing level 100 by the Momentum (18) line. The ETFinancereview will offer you the best support there. You need the best options now and there the deals are perfect.
Forex trade momentum
As soon as an hour candle completely (or, at least, for 80%) is closed over the EMA (19) line we will enter a purchase at opening of the following candle. The Momentum (18) line at the same time shall move higher than the level 100.
- Following Momentum strategy Forex it is necessary to close an hour candle below the moving average and to move the Momentum (18) line lower than the level 100.
- As a rule Momentum Forex system signals appear consistently in such system. Availability of both signals is obligatory.
We put StopLoss on candle’s min / max before crossing level 100 by the Momentum line and we move further by means of a trailing in the direction of profit. The minimum TakeProfit is 2.5 times more than StopLoss.
Forex Momentum trading Stable strategies using the indicator can be constructed only provided that Momentum signals are used as additional. On the small periods and during unstable volatility its signals in general cannot be trusted to as its line is redrawn and the previous signals are canceled.
This pulse indicator is the excellent sensor of the market force, but it is necessary to use it carefully. In spite of the fact that there is only one parameter, it is recommended to select it carefully for the current volatility of an asset and it is obligatory to test it on historical quotations in Momentum Forex trading.