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    Momentum PDF

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    Felipe Silva
    Momentum measures the rate and volume of price changes in the market. Observing the effort and speed of impulsive price moves compared to corrective retracements can provide clues about whether an entry zone is likely to hold. If a corrective retracement takes longer than the initial impulsive move, this indicates the momentum remains in the direction of the impulsive move and the entry zone is likely to react positively, confirming the trade bias. Comparing the timeframes of impulsive and corrective moves can help determine if momentum favors further movement in the direction of the initial impulse or a change in direction.

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    Momentum PDF

    Uploaded by

    Felipe Silva
    216 views5 pages
    Momentum measures the rate and volume of price changes in the market. Observing the effort and speed of impulsive price moves compared to corrective retracements can provide clues about whether an entry zone is likely to hold. If a corrective retracement takes longer than the initial impulsive move, this indicates the momentum remains in the direction of the impulsive move and the entry zone is likely to react positively, confirming the trade bias. Comparing the timeframes of impulsive and corrective moves can help determine if momentum favors further movement in the direction of the initial impulse or a change in direction.

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    Momentum measures the rate and volume of price changes in the market. Observing the effort and speed of impulsive price moves compared to corrective retracements can provide clues about whether an entry zone is likely to hold. If a corrective retracement takes longer than the initial impulsive move, this indicates the momentum remains in the direction of the impulsive move and the entry zone is likely to react positively, confirming the trade bias. Comparing the timeframes of impulsive and corrective moves can help determine if momentum favors further movement in the direction of the initial impulse or a change in direction.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    216 views5 pages

    Momentum PDF

    Uploaded by

    Felipe Silva
    Momentum measures the rate and volume of price changes in the market. Observing the effort and speed of impulsive price moves compared to corrective retracements can provide clues about whether an entry zone is likely to hold. If a corrective retracement takes longer than the initial impulsive move, this indicates the momentum remains in the direction of the impulsive move and the entry zone is likely to react positively, confirming the trade bias. Comparing the timeframes of impulsive and corrective moves can help determine if momentum favors further movement in the direction of the initial impulse or a change in direction.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    MOMENTUM

    REFINEDFX
    Momentum is about the rate of change in the market It measures how fast something is moving and how
    and how much volume is in a specific move. much it is moving.

    Observe the effort of price and speed of price this can If price takes longer to get back to the origin/entry zone
    give you clues whether your entry zone is likely to hold. of the move than the actual impulsive fist move this
    gives us a good indication that we will get a positive
    Say we are looking for a buy position and the
    reaction from this zone.
    momentum of the selling pressure to get back to the
    origin of the impulsive move takes longer than the Say we are looking for a short position and the
    impulsive move this gives us a good indication that momentum of the buying pressure to get back to the
    price is going to react nicely from our entry zone and origin of the impulsive move takes longer than the
    that our bias is correct. impulsive move this gives us a good indication that
    price is going to react nicely from our entry zone and
    You can use this as an effective confirmation for your
    that our bias is correct.
    trade.

    Will help you differentiate between whether a move is


    impulsive or whether it is a corrective move.
    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.

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