Momentum breakouts are prime trading conditions wherein traders can find good trading opportunities. This is because momentum breakouts tend to cause price to move in one general direction and could often result in a trend.
Momentum trading is a technical trading technique wherein traders would buy or sell a tradeable instrument based on the strength of a trend. I grund och botten, traders trading momentum strategies are trading with a strong force behind a price move. These strong price movements often cause price to move in the same direction and could often result in a trending market.
Momentum outside of trading is a result of mass and speed. Inom handel, mass and speed can be identified based on volume and the distance traveled by price within a short period.
One way to identify strong momentum is by observing for momentum candles. Momentum candles are long, full-bodied candles with little to no wicks. This indicates that price moved in one direction within that candle period. This is often accompanied by high volume trading within that candle.
I denna strategi, we will be looking at using a couple of technical indicators in order to confirm momentum.
Dynamic Price Channel
Dynamic Price Channel is a custom channel type indicator which is based on the Average True Range (ATR).
The ATR is basically the average range of price candles within a predetermined period.
The Dynamic Price Channel incorporates the ATR with moving averages in order to identify trend, flyktighet, momentum och genomsnittliga omkastningar.
The Dynamic Price Channel plots moving average line as its main line and is represented by a dashed yellow line. This line could either be a Simple Moving Average (Sma), Exponentiellt glidande medelvärde (Ema), or a Smoothed Moving Average (SMMA). Traders can select the option in the parameters tab of the indicator.
då, six lines radiate from the moving average line. Three above and three below. These lines are plotted a distance away from the middle line, which is the moving average line, based on a factor of the ATR.
The indicator can be used as a volatility indicator. Traders can identify volatility based on the contraction and expansion of the bands away from the middle line.
It can also be used to identify trend direction, based on how the middle line is sloped and based on whether certain lines act as a dynamic support or resistance in the direction of the trend.
It can also indicate overbought or oversold markets based on how price reacts against the outer bands. If price action is showing signs of price rejection on the outer bands, then the market could either be overbought or oversold. These conditions are prime for a mean reversal.
Å andra sidan, the same outer lines can be used to determine strong momentum. If price action is showing signs of strong momentum breakout against the outer lines, the market could be gaining strong momentum which could result in a trend.
RSI (Rsi) is a versatile technical indicator which is a part of the oscillator family of indicators. It can be used to determine trends, momentum and overbought or oversold price conditions.
The RSI plots a line that oscillates within the range of 0 Att 100. Det har också vanligtvis markörer på nivå 50, som är mittlinjen. Om RSI linjen är över 50, then the market bias is bullish, medan om linjen är under 50, then the market bias is bearish.
Den har också markörer på nivå 30 Och 70. En RSI-linje som faller under 30 could indicate an oversold condition, medan en RSI-rad ovanför 70 could indicate an overbought condition. Båda förutsättningarna är främsta för en genomsnittlig återföring.
Emellertid, momentum traders may also view a breach above 70 as a bullish momentum indication, and a drop below 30 as a bearish momentum indication. It is a matter of how price action is responding as the RSI line breaches these levels.
Traders also add level 45 Och 55 to support a trending market indication. Nivån 45 acts as a support level in a bullish trending market, while the level 55 acts as a resistance in a bearish trending market.
Dynamic Channel Momentum Breakout Forex Trading Strategy is a momentum breakout strategy which trades on confluences between the momentum breakout signal coming from the Dynamic Price Channel indicator and the RSI.
On the Dynamic Price Channel, momentum is identified based on a strong momentum candle breaking beyond the outer lines of the Dynamic Price Channel. This is represented by the red lines above and below the middle yellow line.
On the RSI, momentum is confirmed based on the RSI line breaching above 70 in the case of a bullish momentum or below 30 in the case of a bearish momentum.
Confluences between the two momentum signals tend to be high probability momentum signals which could result in a trend.
Föredragna tidsramar: 1-timme och 4-timmars diagram
Valutapar: FX majors, minderåriga och kors
Trading Sessions: Tokyo, London och New York sessioner
Köp Trade Setup
- A bullish momentum candle should breach above the upper red line of the Dynamic Price Channel.
- RSI-linjen bör bryta ovan 70.
- Enter a buy order on the confluence of both signals.
- Set the stop loss on a support level a little below the entry candle.
- Stäng handeln så snart RSI-linjen sjunker nedan 50.
Sälj Handel Setup
- A bearish momentum candle should breach below the lower red line of the Dynamic Price Channel.
- RSI-linjen bör sjunka under 30.
- Enter a sell order on the confluence of both signals.
- Set the stop loss on a resistance level a little above the entry candle.
- Close the trade as soon as the RSI line breaches above 50.
This momentum breakout strategy produces momentum trade setups which are based on two high quality momentum signals.
There are many professional traders who trade using this method with varying parameters and with confluences coming from multiple time frames. Emellertid, as a standalone momentum signal, this strategy could already produce high quality trade setups.
It is also important to note that these trade setups tend to work well whenever the breakouts came from a tight market congestion.
Traders can practice with this strategy as a part of an overall momentum strategy with multiple timeframe confluences.
Forex Trading Strategier Installationsanvisningar
Dynamic Channel Momentum Breakout Forex Trading Strategy is a combination of Metatrader 4 (MT4) Indikator(S) och mall.
Kärnan i denna forex strategi är att omvandla den ackumulerade historia data och signaler handel.
Dynamic Channel Momentum Breakout Forex Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Baserat på denna information, handlare kan anta ytterligare prisrörelser och justera denna strategi därefter.
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How to install Dynamic Channel Momentum Breakout Forex Trading Strategy?
- Download Dynamic Channel Momentum Breakout Forex Trading Strategy.zip
- *Kopiera mq4- och ex4-filer till din Metatrader Directory / Experter / Indikatorer /
- Kopiera tpl-fil (Mall) till din Metatrader Directory / Mallar /
- Starta eller starta om din Metatrader Client
- Välj Diagram och tidsram där du vill testa din forexstrategi
- Högerklicka på din handel diagram och sväva på “Mall”
- Move right to select Dynamic Channel Momentum Breakout Forex Trading Strategy
- You will see Dynamic Channel Momentum Breakout Forex Trading Strategy is available on your Chart
*Observera: Inte alla forex strategier kommer med mq4/ex4 filer. Vissa mallar är redan integrerade med MT4 Indicators från MetaTrader-plattformen.
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