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11/29/16 Addendum .**The settings Anne Marie recommends for the Stochastic Momentum Index right now are 4,20 with a smoothing of 1. You can also add a slow SMI overlay of 6 and 40.**
Originally presented on July 18, 2013 by Anne-Marie Baiynd
What if you had just one technical indicator that gave you accurate signals the majority of the time? How much easier would your trading decisions be? How much more would you make and how much less would you lose? Join Anne Marie Baiynd as she walks you through her favorite momentum based indicator available within MetaStock.
In this one hour class, Anne Marie will walk you step by step through actual past trades from Tradingbook.com that illustrate the clear principles surrounding how she uses her favorite, and often overlooked, momentum based indicator.
Join us for this high impact, career changing webinar to discover one of the most reliable indicators in all of technical analysis. Consistent results come from structured and straightforward trading, and that’s exactly what this indicator helps you achieve.
About the Presenter: Anne-Marie Baiynd began her professional career as a Neuroscience researcher after her studies in Mathematical and Behavioral Statistics. She has been actively trading since 2005 and runs TheTradingBook.com. She has been featured in several recent financial trading books, noted in Forbes magazine, Stocks and Commodities Magazine, Active Trader, on C1 of The Wall Street Journal, and frequently speaks nationally and internationally with the International Traders’ Expo and MoneyShow.com. Anne-Marie trades live every day at TheTradingBook.com and can be seen in action through the daily live webinars conducted each day.
Momentum Trading Post.award Hq, "The Most Reliable Technical Indicator I Have Ever Used".
What are the types of Momentum Trading?
Momentum Trading. There are two sort of Momentum Trading, direct as well as angular. A spinning things has angular Momentum Trading; an object taking a trip with a speed has direct Momentum Trading. In the meantime, as well as throughout phase 7, we’ll handle direct Momentum Trading, as well as simply describe it as Momentum Trading, without the linear.
Here are a few of the technical sign devices commonly used by traders to track Momentum as well as obtain a feel for whether it’s a great time to go into or leave a trade within a fad.
Relocating averages:
These can aid identify total rate trends as well as Momentum by smoothing what can seem unpredictable rate motions on temporary graphes into more easily readable aesthetic trend lines. They’re determined by adding the closing prices over a provided variety of durations as well as dividing the outcome by the variety of durations thought about. They can be straightforward moving averages, or exponential moving averages that provide greater weight to more current rate action.
Relative stamina index (RSI):
As the name suggests, it gauges the stamina of the present rate movement over current durations. The purpose is to reveal the chance of whether the present trend is strong in contrast to previous efficiency.
Stochastics:
The stochastic oscillator compares the present rate of an asset with its variety over a defined amount of time. When the trend lines in the oscillator reach oversold conditions– usually a reading of below twenty they indicate a higher rate Momentum is at hand. And also when they reach overbought conditions usually a reading of above 80 they indicate that a down rate Momentum is in advance.
Relocating ordinary convergence aberration (MACD):
This device is a sign that compares rapid- as well as slow-moving exponential moving rate ordinary trend lines on a chart versus a signal line. This exposes both rate Momentum as well as feasible rate trend reversal points. When the lines are further apart, Momentum is thought about to be strong, as well as when they are merging, Momentum is slowing as well as rate is most likely moving toward a reversal.
Asset network index (CCI):
This Momentum sign compares the “typical rate” of an asset (or average of high, reduced as well as closing prices) versus its straightforward moving average as well as mean deviation of the typical rate. Like stochastics as well as various other oscillators, its purpose is revealing overbought as well as oversold conditions. Readings over 100 indicate overbought conditions, as well as analyses below 100 indicate oversold conditions.
On equilibrium Volume (OBV):
This Momentum sign compares trading Volume to rate. The principle behind it is that when trading Volume rises considerably without a huge modification in rate, it’s an indication of strong rate Momentum. And also if Volume reduces, it’s understood as an indicator that Momentum is reducing.
Stochastic Momentum index (SMI):
This device is a refinement of the traditional stochastic sign. It gauges where the present close remains in relation to the middle of a recent high-low variety, giving a notion of rate modification in regard to the variety of the rate. Its purpose is to provide a suggestion of a reversal factor neighbors, or if the present trend is most likely to continue.
Ordinary directional index (ADX):
This straightforward oscillator device intends only at determining trend Momentum. It plots the stamina of a price trend on a chart in between worths of 0 as well as 100: worths below 30 indicate sideways rate action as well as an undefined trend, as well as worths over 30 indicate a strong trend in a specific instructions. As the worth approaches 100, the Momentum of the trend is understood to expand stronger.
Building block:
In this strategy, traders divide an existing graph into equal durations, separated in blocks. The blocks are after that color-coded according to whether they indicate a higher trend or a down trend; as an example, eco-friendly for higher as well as red for downward. A third color, yellow, could be used to indicate a sideways trend. If the graph shows two consecutive blocks with the very same color, after that it suggests that there is Momentum in a provided instructions.
Dangers To Momentum Trading.
Like any type of design of trading, Momentum trading goes through dangers. It’s been discovered to be effective when prices comply with on a fad, but once in a while Momentum traders can be captured unsuspecting when trends go into unanticipated turnarounds.
Traders must remember that:.
Technical analysis bases its projections of the probability of rate motions on previous rate trends.
Costs in the market can move in an unforeseen manner any time as a result of unanticipated news occasions, or concerns as well as adjustments in sentiment in the market.
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