Momentum Archives • Futures Day Trading Strategies

Posts Tagged Under: Momentum

14 Essential Candlestick Patterns to help you read Charts

 

Candlestick patterns serve as a good visual guide for both day traders and swing traders. You can recognize momentum, change of direction (rejection) and/or price confirmation.  It usually takes time to recognize these patterns, but with a little bit of training and understanding, you can start seeing them in real time trading.

Single Candle Pattern

As we will see, price action traders separate between 1, 2 and 3 candlestick patterns. The 2 and 3 pattern formations are usually an alternation of the 1 candlestick patterns so it’s important that we start here first.

Generally, 2 and 3 candlestick patterns carry more weight because they offer more context in our opinion.

 

Yo-Son and In-Sen

We can also call them “momentum” candles because they are typically large candles without long, or any, wicks. In case of a bullish Yo-Sen, it means that price has rallied all the way from the open until the close of the candle

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How to trade during different times and market periods

 

The way financial markets and prices of financial assets move often follows a certain rhythm and very specific rules. Furthermore, depending on the time of day and the general market environment, the way prices move can change significantly with very clear patterns.

 

Volatility, momentum and expectations

The reason why it pays off to be aware of the time of day you are trading in and the implications for financial markets is that you can often see significant differences in the way price move. An experienced trader, thus, adapts with his trading style based on the general market environment.

  • Changes in volatility are most obvious and financial markets often follow a specific rhythm that we will explore later. During the most active times, volatility often picks up strongly and then drops off in lesser active sessions.
  • The way momentum manifests on your charts changes with the amount and the size of financial players that join

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How to Trade With Indicators the Right Way

 

Indicators can be a great addition to your trading methodology. But they can also ruin even the best trading approach if you don’t know how to use and / or combine them with other tools in efficient ways.

In this article, we provide you with a realistic view of trading with indicators, how to choose the right one and which indicator mistakes to avoid.

 

Do you know your edge and trading strategy?

The biggest mistake traders make is that they try to be in the market and find trades all the time. The professionals, on the other hand, know exactly which market circumstances favor their trading approach and then choose their tools accordingly.

If you are a trend-following trader, you should look at momentum indicators and stay away from oscillators. When you are a range trader, on the other hand, momentum indicators won’t improve your trading and you have to pick from oscillators.

Using

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How to create a more robust trading method

 

A good trading method is much more than a set of entry rules. Whereas most traders would agree to this statement, only very few really internalize the true meaning while always blaming “bad entry signals” for their lack of success. In this article we show you which other aspects of a trading method need to be defined and how the individual components can help your trading become more robust.

 

What is a good signal?

There are dozens, maybe hundreds, different ways to come up with entry criteria for a trading method. Often, it’s not about whether certain parameters are “better or worse”, but how they are combines and applied to the charts. Here are a few principles that help traders create better trading signals:

 

  1. Price action and indicators

Most traders think that they have to choose between indicators and price action trading. However, the best traders know that they can combine the two

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How to detect true breakouts that can lead to great runs

 

The ability of being able to distinguish between breakouts that fail and breakouts that succeed is an important trading skill. Many traders run into problems by making the wrong decision prior to a potential breakout and falsely estimating the likelihood for a successful or failed breakout. In this article, we will share 7 principles of technical analysis that will help you trade breakouts effectively and find breakouts that lead to potentially large trending moves.

Pullback and retest

This is your odds-enhancer when trading breakouts around support and resistance levels. Breakouts rarely lead to runaway trend moves; it is much more common to see a breakout, followed by a pullback and a retest of the initial level.

We understand that FOMO (the fear of missing out) is a common bias and being scared of missing large trends is what makes people enter trades too early. However, waiting for the successful retest of a breakout

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