A sharp reaction of the indicator at the moments of speculative price bounces that makes its signals absolutely incorrect is a shortcoming of Forex Momentum trading. Therefore, this tool can only be used in the complex strategies with various types of indicators. The BrightFinance review happens to be essential now.
Forex momentum trend trading system + EMA
Indicators: two moving averages of EMA (9) are red, EMA (30) – the blue line; the Momentum (14) indicator with level 100.
Trade asset: the main currency pairs in the period of stable volatility.
Timeframe: H1 – for the search of point of entry and holding the position.
Decision making requires availability of Demark line connecting 3 minimum or 3 maximum fluctuations.
So, for a signal for purchase the following requirements must be satisfied:
- the price breaks Demark line up
- the Momentum line moves higher than the level 100
- the EMA (9) line crosses the EMA (30) line from bottom to top
For a signal for sale the opposite conditions are necessary:
- breakthrough of the line of Demark down
- Momentum line movement is lower than level 100
- crossing of the EMA (9) line and EMA (30) line from top to the bottom
- momentum forex strategy
We enter the transaction at opening of a new candle. Crossing of moving averages after breakdown of Demark trend line is allowed. We put Stop Loss on behind a local extremum: for sale – higher than a maximum, for the purchase – lower than a minimum. We will close the transaction right after the Momentum line crosses level 100 in the opposite direction.
Forex Momentum Elder Trading Strategy
Indicators: EMA (19) moving average on closing prices and Momentum (18) with level 100.
Timeframe: for opening and holding a position on – H1. Strategy is based on multiple currencies, stable results are yielded by the main pairs – EUR / USD, GBP / USD, AUD / USD.