Momentum trading Best way to approach forex trading

I will update the text later, Busy in some assignments But I will surely update the blog today after the end of U.S trading session

How to trade Momentum

Example Of Momentum Trading

Recent activity spotted in Usd/chf

In this post I would cover How professional trade momentum, Basically it is not necessary that If somethings work for others, should work for you and momentum trading is no different, Because when You try to trade momentum you need understand few Important things and needs to build a check list.

A. Breakouts

B. Rejection After Breakout Should not go too far.

C. First attempt to rise after After breakout

D. Seller's behavior after rejection After First Attempt Failed

Following the above mention points, I would concentrate more on charts which clear the idea how professional traders and they don't need to keep sticking to the screen and wait for the opportunities but rather they eye some levels like rotation center, Momentum after breakouts, Levels protected, Reference points.

Although it is not necessary to cover all these points when you decide to change you trading style and opt for momentum (which for me is the best way to trade as It always tells you when to enter quickly and cover quickly before momentum fades out.)

In the above mentioned chart, there are few levels I have mentioned which are primary breakout and rejection levels and If you want to add few more confirmation life if there is neutral day after breakout and If that level is protected in the first attempt and market rotates around that protection area.

Any question asked will be replied with best of my knowledge.

How to trade Break-Away Gap

In this post I would try to cover One way to trade the "Gap" In currencies. And this is the point which I have never covered in my previous blog posts But I never sight any such activity.

SO, When I was today after opening I saw correctional bottom and price reverses away with break away Gap and One important thing it done was test the broken level with the same candle and price never stops after that.

There are lot of other ways to trade "GAPS", But there has to be true logic behind the price action, which can guide you through the previous day activity, which in this case was neutral after strong selling. One more logic was that previous swing makes continuous higher highs and price bounce of the demand zone was good enough in this case and "Break-Away GAP" fulfill the rest of the requirements in this case. Most of the traders look and wait for the gap to be filled but not in such case where price went further away from GAP.

Usd/cad Intraday Outlook based on Price Action

Ahead of very choppy session in panic trading Eur/usd give away all the gains and that has happened thrice in this week, So far my bias for Eur/usd is neutral to bearish ahead of FOMC Meeting next week.

I will post the usd/cad chart, which is more likely to move today with some good strong manufacturing data about to release.

Chart of Usd/cad will be posted later in the day

Overbought and Oversold Market Real Terms

I have cover most of the points of "Price Action" in my blog. But I would like to put more thoughts in new Trader's mind that what is overbought and oversold market and recent with Recent example. Being "Overbought and Oversold" is not When an oscillator give you some reading above or below the predetermined values set by trader. But overbought and oversold situations are created by Market movers like "Institutions". And they often end up the traps and then Market Liquidation breaks is confirmed after that momentum which comes in late after first part of the move.

See the chart of Gbp/usd I have mentioned below with Recent Price Activity

I will more on that topic in the days to come because it is so necessary to confirm all the points before we need to take a look at these type of traps and not to use that setups and try to analyse every market as "Overbought" and "Oversold" Market.