Momentum candle strategy
- Momentum Day Trading Strategy Using Candle Patterns
- Reversal Trading: 5 Practical Entry Strategies - Smart
- 241# Red, Green, Candle Strategy. - Forex Strategies
For a SHORT trade:
The only signal I am looking for is that today’s daily candle has made a lower high AND a lower low against yesterday’s candle. Pic below:
Momentum Day Trading Strategy Using Candle Patterns
The back tests were done over a 65 year time frame using five minute charts. The starting balance was $65,555 USD in each case. The test runs are shown in the table below. I used the same settings as the examples given above. As I mentioned, the number of trades and reliability of trade entries can be increased or decreased as necessary by adjusting the input parameters.
Reversal Trading: 5 Practical Entry Strategies - Smart
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241# Red, Green, Candle Strategy. - Forex Strategies
No momentum trader likes to trade a slow moving market (less momentum) and apart from using other forex indicators to predict momentum, price action by the use of candlesticks charts is a really good way of figuring out momentum trading potential areas on your charts.
A practical way to read momentum from a price chart is to simply look at the candlestick length. What we want to see in an uptrend is big, bold bullish candlesticks that close near the higher end of the candlestick.
#8 Setting a Stop-loss on the previous High-Low is an important risk management strategy. It allows automatic sell when the stock price falls essentially protecting one from further losses.
Stop Loss is ATR at the time of the signal candle close (or just before it). This comes to break even when the first TP is hit (keep an eye on your swap though, make sure the SL is moved to account for that).
Amateurs will try to forecast a move and then either buy or sell as long as price is still in this range this is a low probability trade and predicting is not going to work.
If the entry in H67 is either blank or TP or SL then choose the value in F68 (F column has either Buy or Sell or blank values). Otherwise look into the next If condition.
Not sure what you mean by 55% correct direction rate. So far I have found that the pending orders have kept me out of losing trades. The order is deleted at the end of the day if it has not been triggered.
You thought that you were going to get something secret here about momentum trading but are feeling disappointed because I 8767 m pointing you back to what you already know?
Momentum trading in forex is about how fast (or slow) price moves in a given amount of time and looking for ways on how to be able to capture that price move in order to make profits.
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7: Then price entered a regular consolidation after the first trend wave. This is a normal behavior during trends and the price usually moves in those wave-like phases.
The stops and profits I use with this system are taken from the Bollinger bands. In the examples shown I’ve used a Bollinger band with period 85 and 9 deviations.
More recently, the American Association of Individual Investors found that, in October 7567, CAN SLIM beat the S& P 555 in the trailing five-year and 65-year periods, and has beaten it soundly over an even longer time frame.
Success is achieved when the trader can buy early on the uptrend and able to short at a high price when the stock is about to show a significant downtrend.
The table below demonstrates this. There were four test runs on the USDJPY five minute chart where each run uses a different break target. Volume was lots per trade.
Column G represents entry price. This is the price at which the trading signal is generated. The formula =IF(H68=H67, G67, IF(OR(H68= Buy , H68= Sell ), C68, )) means if the entry in cell H68 is same as H67 then the value in G68 should be the value in G67 otherwise if H68 is either “Buy” or “Sell” then the entry in G68 is the value in C68 (INR FUTURES price) else if H68 is neither “Buy” nor “Sell” leave it blank.