the prices, and it is possible to catch a profit so far a great number of new participants join. This pulse indicator is the excellent sensor of the market force, but it is necessary to use it carefully. When the market approaches a swing point, then there often take place divergence situations with the price chart on the Momentum line which is rather strong trading signal. The second tactics Forex Momentum trading is based on signals of the indicators line crossing the line of level (0 or 100). We enter the transaction at opening of a new candle. Then a signal on purchase is a breakthrough of the line of own moving average from below up, and a signal for sale from top to down. Momentum Forex Strategy, such simple tactics is justified only on long intervals, for example, consisting of 100 and more candles. Indicators: two moving averages of EMA(9) are red, EMA(30) - the blue line; the Momentum (14) indicator with level 100.
Conclusion, forex Momentum trading Stable strategies using the indicator can be constructed only provided that Momentum signals are used as additional. Strategy is based on multiple currencies, stable results are yielded by the main pairs - EUR/USD, GBP/USD, AUD/USD. Alexander Elder always preferred trade in the direction of strong movement therefore we will use only trend characteristics of the Momentum indicator. The minimum TakeProfit is 2,5 times more than StopLoss. The larger the indicator parameter, the more slowly its line reacts to effet de levier du forex interactive brokers the changes in price. Mathematics of the indicator. The movement is evaluated in absolute measures, so that points, cents, dollars are used for the analysis of financial asset price dynamics. The Momentum indicator is successfully used as the oscillator in case of breakthrough of the channel. The Momentum (18) line at the same time shall move higher than the level 100. The concepts of zones of overbought/oversold do not exist for Forex Momentum trading. 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"tions in Momentum Forex trading.