Momentum Wave Foreign exchange Buying and selling Technique


Merchants typically drool every time they see that the market has trended. As merchants, we frequently expertise considering to ourselves, “If I solely noticed that development coming.” If solely we knew {that a} market would development and will transfer for a number of hundred pips. If there’s one factor we can’t do in buying and selling, that’s considering in hindsight and regretting our selections. That may solely damage our psyche and our future trades.

Some would quite forgo attempting to find these massive trending market strikes. They might quite accept small constant wins, quite chase for one thing that’s fairly troublesome to catch. There may be nothing improper about that. In spite of everything, consistency is what makes a dealer worthwhile.

Nonetheless, there are additionally merchants preferring to take the possibility and go after these massive trending strikes. They might purpose for a number of lots of of pips swing buying and selling and hope they might catch the subsequent massive one.

One of many higher methods to enter a commerce previous to a development is by buying and selling primarily based on momentum. It’s because momentum is commonly the small push wanted by the market with a view to begin a development. Consider it as a tugboat pulling a tanker. If a tugboat pulls on the tanker onerous sufficient and get out of the way in which, likelihood is that the tanker would proceed to maneuver for fairly a while. The identical is true with the market. One momentum candle or sign may provoke a development that would final for a number of days.

Momentum Wave Foreign exchange Buying and selling Technique is a method that’s initiated by momentum and goals to catch massive tendencies by staying with the commerce till the development stops. It makes use of two momentum indicators that would assist us determine the precise entry factors previous to the massive trending transfer.

RSI Filter

The RSI Filter is a momentum indicator primarily based on the Relative Power Index (RSI).

The basic RSI is an oscillating indicator which additionally helps determine development, overbought or oversold costs, and momentum.

The basic RSI plots a line that oscillates from 0 to 100. It additionally has markers at degree 70, 50 and 30. If the RSI line stays above 50, the market is in an uptrend, whereas if the RSI line stays beneath 50, then the market is in a downtrend. Momentum is recognized primarily based on the breaching of the RSI line above 70 or beneath 30. If the RSI line breaches above 70, then the market is gaining a bullish momentum. If the RSI line drops beneath 30, then the market is gaining bearish momentum.

The RSI Filter relies on this idea. It plots a optimistic bar every time the RSI line breaches above 70 and continues plotting optimistic bars till the RSI line drops beneath 50. However, it might plot a damaging bar every time the RSI line drops beneath 30 and continues plotting damaging bars till the RSI line crosses above 50.

MA Angle Indicator

MA Angle is a development following technical indicator displayed as an oscillator. It identifies development path primarily based on the slope of a shifting common line.

One concept for figuring out development path is by trying on the slope of a shifting common line. If the road is sloping up, then the market is in an uptrend. If the road is sloping down, then the market is in a downtrend.

The MA Angle indicator relies on this idea. It identifies the slope of the underlying shifting common line by duplicating a shifting common line and shifting the duplicate ahead. It then computes for the distinction between the 2 shifting common strains. If the result’s a big optimistic quantity, then it should plot a lime inexperienced bar indicating a bullish development bias. If the result’s a big damaging quantity, it should plot a hearth brick bar indicating a bearish development bias. If the result’s insignificant, it should plot a yellow bar indicating a non-trending market.

Buying and selling Technique

Momentum Wave Foreign exchange Buying and selling Technique anticipates trending market strikes initiated by a momentum sign utilizing the confluence of the RSI Filter and the MA Angle.

The MA Angle indicator is used to determine the development path bias. Development bias will likely be primarily based on whether or not the bars it plots are lime inexperienced or fireplace brick.

The RSI Filter is used to determine the momentum sign. This will likely be primarily based on the shifting of the bars from damaging to optimistic or vice versa. Correct alerts will likely be primarily based on the shifting of the bars and never the resumption of prior bars. It’s because the shifting of the bars point out that the RSI line has breached above 70 or dropped beneath 30.

Trades are taken primarily based on the confluence of the reversal alerts coming from the 2 complementary indicators.

Indicators:

  • RSIFilter (default setting)
  • MAAngle (default setting)

Most popular Time Frames: 1-hour, 4-hour and day by day charts

Forex Pairs: FX majors, minors and crosses

Buying and selling Periods: Tokyo, London and New York classes

Purchase Commerce Setup

Entry

  • The MA Angle indicator ought to begin to print lime inexperienced bars.
  • The RSI Filter indicator ought to print a optimistic bar.
  • Worth motion ought to breach above the earlier highs.
  • Enter a purchase order on the confluence of the situations above.

Cease Loss

  • Set the cease loss on the fractal beneath the entry candle.

Exit

  • Shut the commerce as quickly because the MA Angle indicator prints a damaging bar.

Momentum Wave Forex Trading Strategy 2

Promote Commerce Setup

Entry

  • The MA Angle indicator ought to begin to print fireplace brick bars.
  • The RSI Filter indicator ought to print a damaging bar.
  • Worth motion ought to drop beneath the earlier lows.
  • Enter a promote order on the confluence of the situations above.

Cease Loss

  • Set the cease loss on the fractal above the entry candle.

Exit

  • Shut the commerce as quickly because the MA Angle indicator prints a optimistic bar.

Momentum Wave Forex Trading Strategy 3

Momentum Wave Forex Trading Strategy 4

Conclusion

This buying and selling technique works properly for merchants who’re aiming for giant yields. Nonetheless, this technique can also be a excessive danger and excessive reward technique. Commerce setups wouldn’t at all times be massive winners. There will likely be small wins and losses every so often. Nonetheless, there will even be trades that will produce large yields. These are the kind of trades that will make merchants very worthwhile utilizing this technique.


Foreign exchange Buying and selling Methods Set up Directions

Momentum Wave Foreign exchange Buying and selling Technique is a mixture of Metatrader 4 (MT4) indicator(s) and template.

The essence of this foreign exchange technique is to rework the collected historical past information and buying and selling alerts.

Momentum Wave Foreign exchange Buying and selling Technique gives a possibility to detect varied peculiarities and patterns in value dynamics that are invisible to the bare eye.

Based mostly on this info, merchants can assume additional value motion and regulate this technique accordingly.

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Methods to set up Momentum Wave Foreign exchange Buying and selling Technique?

  • Obtain Momentum Wave Foreign exchange Buying and selling Technique.zip
  • *Copy mq4 and ex4 recordsdata to your Metatrader Listing / specialists / indicators /
  • Copy tpl file (Template) to your Metatrader Listing / templates /
  • Begin or restart your Metatrader Consumer
  • Choose Chart and Timeframe the place you wish to check your foreign exchange technique
  • Proper click on in your buying and selling chart and hover on “Template”
  • Transfer proper to pick out Momentum Wave Foreign exchange Buying and selling Technique
  • You will note Momentum Wave Foreign exchange Buying and selling Technique is offered in your Chart

*Observe: Not all foreign exchange methods include mq4/ex4 recordsdata. Some templates are already built-in with the MT4 Indicators from the MetaTrader Platform.

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