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How To Make A Full-Time Income Trading Less Than Part Time

Big Dogs Exposed

Sound familiar? You have spent years surfing the 'Net, and studying books and charts in search of commodity trading rules, a currency trading strategy, stock market successful trading strategies, or information on how to use commitments of traders data. All you really want is the 'Holy Grail' of entry techniques. You usually end up adding one indicator on top of another, switching from one guru to the next, until you are so confused and unsure of your entry system that you are unable to make entry decisions and stay organized. You get so distracted and frustrated that you quit watching the markets all together!

Shows you how FAST you can make money when the BIG DOGS make their move - by shamelessly copying this winning group . Even I am STILL surprised by how much power they have over ALL markets - not just commodities futures, currencies, and stocks.G

Newsletter: Momentum Indicator

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Momentum Indicator

Trend-following approaches have their limitations. They lag price movement, by indicating a change in trend after the fact. Also, whipsaw effects can arise, where prices are in trading ranges.

Enter the momentum indicator. It is used to foretell a trend change and price reversal at support and resistance levels within a trading range. An oscillator, on the other hand, comes from a family of indicators that identify a tradable as either overbought or oversold.

The momentum indicator, as originally presented by J. Welles Wilder, comes in different flavors, two of which are the momentum indicator and the relative strength index (RSI)

The typical 10-day momentum indicator, plotted by subtracting the closing price 10 days ago from the current closing price, oscillates around a neutral zero line. This indicator and RSI can both be used to enter and exit a trade. Using the momentum indicator, you would simply go long when it rises above the zero line, and go short when it drops below that line.

Some charting packages demarcate the line differently, using another scale, such as 99.5 and 100.1 (or thereabouts) on either side of the line. But, you get the point. There is a waterline there, and the same principles apply. You also want to watch for when this indicator turns and changes direction. Also, inspect the angle of that transition.

It is generally accepted good trading practice to look for confirmation of such signals by inspecting other indicators, patterns, and trendlines, looking for divergences between indicators and price action, and observing price behavior in and around pivot points (i.e., successful penetration thereof).

Technically speaking, the momentum indicator measures a tradable’s speed or velocity of change in price. This n-period (10-day being fairly standard) indicator is derived by subtracting the closing price n periods ago from the current closing price. Momentum is flat, if the result is zero. Momentum is negative, if the current close is less than the close n periods ago. Conversely, momentum is positive, if the current close is greater than the close n periods ago.

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How To Make A Full-Time Income Trading Less Than Part Time

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