Friday, September 12, 2014
How to trade momentum and Find best trade locations
While We prepare ourselves to chose what type of trader we are, We should prepare for Momentum trading Even for scalping or Swing trading. And when We decided We should use some strong points which cover the strong segments of "Momentum Trading".
Even though Imbalance is not present in the market, It still can continue its previous day activity, And we should be in search for this type of trade locations where Price has retraced of the prior move and Look for momentum to come again and continue moving in the prior trend before correction.
Example of Momentum trading
For next few days, As I have always done to cover the points which we need to be aware while we trade Momentum trading and above chart is the first example, But still if you trade Neutral days after breakout. You can still trade Momentum for continuation or reversals.
Thursday, September 11, 2014
How to spot Imbalance in strong trends
As I have continuously mentioned in my previous posts that "Imbalance is what creates trends and balance create ranges", And When We have seen such strong trends like the one we have seen after the end of correctional trend in usd/jpy, We have to filter our entries.
In this chart I have clearly stated that "Neutral day" activity where we have seen such strong behavior after false breakout on neutral day and there was minor development area, which was left behind after momentum finally take place and we have to look for tight stops in such cases as price usually don't come back if We manage to find out continuation of the trend.
Example of the chart usd/jpy
Clearly I have identified the opportunity and spotted out trade location in such cases which is the important point that we have seen some ranges and then finally we have seen some momentum picking up and we have finally manage to collect some pips although my entry came earlier at 106.38, Because I use to spot out such activity earlier and specially when I only target strong trends and some policy moves which makes a good combination, although it is not easy but stops was not very far away from my entry and will cover quickly if risk again hit the market as it is the case driving riskier assets like aussie, kiwi and usd/jpy counters.