Saturday, February 24, 2007

What is the difference between momentum and trend in forex market? -

Momentum The amount of acceleration of an economic, price, or volume movement. A trader who follows a movement strategy will purchase stocks that have recently risen in price. Momentum indicators Indicators used in market analysis to quantify the momentum of upward and downward price movements. Trend The general direction of the market. Trendline A technical chart line that depicts the past movement of a security and that is used in an attempt to help predict future price movements. So think of the difference like this. If you throw a ball; the first half of the ball s momentum is strong and stronger than 2nd half. Then after throwing ball several times you see a trend of strength the first half and less strength the second half. not really sure, but you can check the site below. they can give you a live one on one help as you need or you can subscribe for a free e-book on forex market. good luck. Find thousands of the best Youtube videos about forex, forex trading, managed forex accounts, stocks and other kinds of investments at http://www.forex-profit.info you should find an answer to your question there! momentum to me implies the movement is current (right now) and strong. a trend may exist on a pair but it may not be moving because pairs have movement cycles, then consolidations, then movements, then consolidations and it just keeps repeating. the trend dictates what direction. momentum is current movement (in my opinion). all 3 CAD pairs are in uptrends right now but they generally dont move until the USD and CAD session. they consolidate in between. good trading mark mc donnell www.forexearlywarning.com Momentum means movement and a trend means a pattern is developing.

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