MOMENTUM

REFINEDFX
Momentum is about the rate of change in the market
and how much volume is in a specific move.
Observe the effort of price and speed of price this can
give you clues whether your entry zone is likely to hold.
Say we are looking for a buy position and the
momentum of the selling pressure to get back to the
origin of the impulsive move takes longer than the
impulsive move this gives us a good indication that
price is going to react nicely from our entry zone and
that our bias is correct.
You can use this as an effective confirmation for your
trade.
Will help you differentiate between whether a move is
impulsive or whether it is a corrective move.
It measures how fast something is moving and how
much it is moving.
If price takes longer to get back to the origin/entry zone
of the move than the actual impulsive fist move this
gives us a good indication that we will get a positive
reaction from this zone.
Say we are looking for a short position and the
momentum of the buying pressure to get back to the
origin of the impulsive move takes longer than the
impulsive move this gives us a good indication that
price is going to react nicely from our entry zone and
that our bias is correct.
The impulsive move up took 1H and
10M. Whereas the corrective move
down took 2H 35M. This tells us that
the momentum is to the upside as the
selling pressure is indecisive and
weak.
The impulsive move down took 9H
Whereas the corrective move took 1D.
This tells us that the momentum is
to the downside as the buying
pressure is indecisive and weak.
The impulsive move up took 30M
Whereas the corrective move down
took 1H 55M. This tells us that the
momentum is to the upside as the
selling pressure is indecisive and
weak.