Every trader loves momentum!

What is Momentum?

Let's straight to the point.

Momentum = Trend strength

Below are few examples:

Chart above shows a trend with strong bullish momentum but later the momentum become weaker.

As you can see from chart above, the price is just simply move up and down without any direction or strength. This mean the price have no momentum at all. A sideways market for you.

Above FCPO example shows price from strong bullish momentum turned to strong bearish momentum.

Here are few way to identify momentum:

#1 Moving average

As you can see, FKLI in a strong uptrend momentum when EMA 8 and 13 golden, price move higher high & higher low.

#2 Support & Resistance

As chart above, you can see that whenever the price is near/touch dynamic support price will create high uptrend momentum and create new high.

If price really break and stay below dynamic support seller will become aggressive and create strong downtrend momentum.

When price come to importance support zone, you will see strong & long green candles. This mean smart monies are keep buying and push the market up.

Of course, just using methods above to identify momentum is not sufficient, we still need other tools to confirm strong momentum trend. Traders can learn it from Intensive TFM Futures Program. Have fun learning!

FB - David Lee