Trend, Momentum and Timing

Saturday, September 9, 2006

When doing technical analysis on forex. There are 3 factors that need to be properly recognise and use. They are trend, momentum and timing.

Trend is the tendency of movement to a particular direction. When it is uptrend, the price will move up and vice versa.

Momentum is the strength of movement. The stronger the momentum the stronger the move. When the momentum is finished, it will reverse.

Timing is when u enter the market. Enter only when the profit to risk ratio is good. Other than that better stay out.

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