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Perfectcryptotraders

CAP AND HANDLE PRICE ACTION PATTERNThe Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. The cup and handle pattern occurs in both small time frames , like a one-minute chart, and in large time frames , like daily, weekly, and monthly charts. It occurs when there is a price wave down, followed by a stabilizing period, followed by a rally of approximately equal size to the prior decline. It creates a U-shape , or the "cup" in our "cup and handle." The price then moves sideways or drifts downward within a channel—that forms the handle. The handle may also take the form of a triangle. The handle needs to be smaller than the cup. The handle should not drop into the lower half of the cup , and ideally, it should stay in the upper third. As its name implies, there are two parts to the pattern: the cup and the handle. The cup forms after an advance and looks like a bowl or rounding bottom. As the cup is completed, a trading range develops on the right-hand side and the handle is formed. A subsequent breakout from the handle's trading range signals a continuation of the prior advance. A cup and handle chart may signal either a reversal pattern or a continuation pattern. A reversal pattern occurs when the price is in a long-term downtrend, then forms a cup and handle that reverses the trend and the price starts rising. A continuation pattern occurs during an uptrend; the price is rising, forms a cup and handle, and then continues rising. Entering a Cup and Handle Trade Wait for a handle to form. The handle often takes the form of a sideways or descending channel or a triangle. Buy when the price breaks above the top of the channel or triangle. When the price moves out of the handle, the pattern is considered complete, and the price is expected to rise. While the price is expected to rise, that doesn't mean it will. The price could rise a little and then fall, it could move sideways, or it could fall right after entry. For this reason, a stop-loss is needed. Picking a Target or Profitable Exit Whatever the height of the cup is, add that height to the breakout point of the handle. That figure is the target. For example, if the cup forms between $100 and $99, and the breakout point is $100, the target is $101. Sometimes the left side of the cup is a different height than the right. Use the smaller height, and add it to the breakout point for a conservative target. Or use the larger height for an aggressive target. A Fibonacci extension indicator may also be used. Draw the extension tool from the cup low to the high on the right of the cup, and then connect it down to the handle low. The one-level, or 100%, represents a conservative price target, and 1.618, or 162%, is a very aggressive target. Therefore, targets can be placed between one and 1.618. If you're day trading and the target is not reached by the end of the day, close the position before the market closes for the day. A trailing stop-loss may also be used to get out of a position that moves close to the target but then starts to drop again. Setting a Stop-Loss A stop-loss order gets a trader out of a trade if the price drops, instead of rallying, after buying a breakout from the cup and handle formation. The stop-loss serves to control risk on the trade by selling the position if the price declines enough to invalidate the pattern Place a stop-loss below the lowest point of the handle. If the price oscillated up and down a number of times within the handle, a stop-loss might also be placed below the most recent swing low. Since the handle must occur within the upper half of the cup, a properly placed stop-loss should not end up in the lower half of the cup formation. If the stop-loss is below the half-way point of the cup, avoid the trade. Ideally, the stop-loss should be in the upper third of the cup pattern. By having the handle and stop-loss in the upper third (or upper half) of the cup, the stop-loss stays closer to the entry point, which helps improve the risk-reward ratio of the trade. The stop-loss represents the risk portion of the trade, while the target represents the reward portion. Considerations Traditionally, the cup has a pause, or stabilizing period, at the bottom of the cup, where the price moves sideways or forms a rounded bottom. It shows the price found a support level and couldn't drop below it. It helps improve the odds of the price moving higher after the breakout. A V-bottom, where the price drops and then sharply rallies may also form a cup. Some traders like these types of cups, while others avoid them. Those that like them see the V-bottom as a sharp reversal of the downtrend, which shows buyers stepped in aggressively on the right side of the pattern. Opponents of the V-bottom argue that the price didn't stabilize before bottoming, and therefore, the price may drop back to test that level. Ultimately, if the price breaks above the handle, it signals an upside move. If the trend is up, and the cup and handle forms in the middle of that trend, the buy signal has the added benefit of the overall trend. In this case, look for a strong trend heading into the cup and handle. For additional confirmation, look for the bottom of the cup to align with a longer-term support level, such as a rising ​trend-line or moving average. If the cup and handle forms after a downtrend, it could signal a reversal of the trend. To improve the odds of the pattern resulting in a real reversal, look for the downside price waves to get smaller heading into the cup and handle. The smaller down waves heading into the cup and handle provide evidence that selling is tapering off, which improves the odds of an upside move if the price breaks above the handle. Trend: To qualify as a continuation pattern, a prior trend should exist. Ideally, the trend should be a few months old and not too mature. The more mature the trend, the less chance that the pattern marks a continuation or the less upside potential. Cup: The cup should be “U” shaped and resemble a bowl or rounding bottom. A “V” shaped bottom would be considered too sharp of a reversal to qualify. The softer “U” shape ensures that the cup is a consolidation pattern with valid support at the bottom of the “U”. The perfect pattern would have equal highs on both sides of the cup, but this is not always the case. Cup Depth: Ideally, the depth of the cup should retrace 1/3 or less of the previous advance. However, with volatile markets and over-reactions, the retracement could range from 1/3 to 1/2. In extreme situations, the maximum retracement could be 2/3, which conforms with Dow Theory. Handle: After the high forms on the right side of the cup, there is a pullback that forms the handle. Sometimes this handle resembles a flag or pennant that slopes downward, other times it is just a short pullback. The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement, the more bullish the formation and significant the breakout. Sometimes it is prudent to wait for a break above the resistance line established by the highs of the cup. Duration: The cup can extend from 1 to 6 months, sometimes longer on weekly charts. The handle can be from 1 week to many weeks and ideally completes within 1-4 weeks. Volume: There should be a substantial increase in volume on the breakout above the handle's resistance. Target: The projected advance after breakout can be estimated by measuring the distance from the right peak of the cup to the bottom of the cup.
FX:XAUUSDEducation
by TaherJalili
Price action To be a price action trader you must read and understand the price, and all of the chart. . Remember that and use it in your trading. Not patterns and not signals or triggers. The signals and the entries are super important, but it is the overall price action story that is the king of the jungle. To make the story you need to read the whole chart. A really common question I get when traders are marking their support and resistance levels is “how far back do I go on my chart to mark my level?”. The answer is that you should read the WHOLE chart and go as far back as the chart allows.
Education
by TaherJalili
TRADING SYSTEM(Process) Part2Business Process Architecture, ... is a description of the organization's business model and strategy, its goals and its performance metrics A Trading Process Architecture is the overview of a set of trade processes that reveals their inter-relations, which may be extended with guidelines to determine the various relations between trade processes. Having a trade system process architecture in place provides guidance for the actual modeling of the involved Trading system processes
BEducation
by TaherJalili
Development of a Trade SystemIn mathematics and computer science, an algorithm is a finite sequence of well-defined, implementable instructions, typically to solve a class of problems or to perform a computation. Algorithms are always unambiguous and are used as specifications for performing calculations, data processing, automated reasoning, and other tasks As an effective method, an algorithm can be expressed within a finite amount of space and time, and in a well-defined formal language for calculating a function. Starting from an initial state and initial input (perhaps empty), the instructions describe a computation that, when executed, proceeds through a finite number of well-defined successive states, eventually producing "output" and terminating at a final ending state. The transition from one state to the next is not necessarily deterministic; some algorithms, known as randomized algorithms, incorporate random input I have tried to show you how to process for a trading system with a flowchart . Let's optimize your trading strategy with the problem-solving algorithm. If you have experienced this before, share it with me in the comments. support me by Like and Follow.
B
by TaherJalili
2
RISING AND FALLING WEDGES Good afternoon. Today we are looking at another chart pattern RISING AND FALLING WEDGES . Let’s get on it. Wedges can either be continuation or reversal patterns. Just to refresh your memory, continuation patterns are formations that show side way price action, signalling a temporary pause in the trend; whereas reversal patterns indicate a change in the trend. Whether wedges are continuation or reversal, it’s not really significant, what matters is spotting the pattern, and knowing how to make money out of it. Wedge patterns are classified as either RISING WEDGES OR FALLING WEDGES. Rising wedges, as the name implies, slopes upwards, and they eventually break to the downside Graphically, rising wedges look like the above sketch chart(Sketch 1) notice how the slope of the support line is steeper than that of the resistance. This indicates that higher lows are being formed faster than higher highs. That is precisely how the wedge pattern get to be formed. The inverse of the rising wedge is the FALLING WEDGE , which usually breaks to the upside.(Sketch 2) Just like on the rising wedge pattern, the falling trend line connecting the highs (resistance) is steeper than the trend line connecting the lows (support). As mentioned earlier, rising and falling wedges can either be continuation or reversal patterns. But whether they be continuation or reversal patterns is not our focus, our focus is on making money when these patterns ‘BREAKOUT’ . If you case you are wondering what we mean by ‘breakout’; consider the chart above(Sketch 3) of a falling wedge and a rising wedge, and how they typically break to the upside and downside, respectively Now let’s look at how we can make money out of a RISING WEDGE PATTERN. Let’s start by considering the chart (Sketch 4) Now, when entering a Short trade based on a rising wedge, it’s important to wait for a break and close below the support line. After this close, aggressive traders can ‘pull the trigger’. But a more conservative way to enter the trade, is to wait for a retest of the previous support (now resistance) before pulling the trigger. In this case the sequence will be something like this: 1. Wait for a close below support 2. Wait for a retest of the previous support 3. If the previous support act as resistance, then enter short trade A Long trade based on a falling wedge is entered on the same principle (but in reverse), that is, 1. Wait for a price close above resistance 2. Enter Long trade at that close (for aggressive traders) 3. For conservative traders, wait for a retest of the previous resistance (now support) before pulling the trigger That’s ENTRY, now let’s look at placing stop loss and take profit levels when trading wedge patterns. Take profit target should ideally be the height of the wedge formation. Consider the chart above(Sketch 4) Stop loss orders should always be placed at a level that if hit, it will invalidate the trading set up. In the case of rising wedges, this level will be the area just above resistance. The opposite is true for falling wedges, place stop loss just below support. Thanks for your Likes and Support.... Until next time, let’s keep if Profitable!
COINBASE:BTCUSDEducation
by TaherJalili
10
Forex Market Hours and Sessions (everything you need to know)As Forex traders, it is very important to know when the Forex market opens and closes what is the availability of the market . Moreover, it is important to understand how do the different trading hours or sessions impact your trading strategy. The Forex market opens and closes as well as the four global sessions. Fx market is open 24-hours a day for retail trade* every Sunday at 5 pm EST . It then closes each Friday at 5 pm EST. Please note that market liquidity is very low at the start of the trading week. Therefore, many traders consider the market to be open only for the 5 weekdays. At this point you may be asking, if Forex is indeed a 24 hour market, why can I only trade Monday through Friday? ************************************************* What is a retail trader, you ask? Put simply, a retail trader is someone who buys or sells for their personal account, and not for another company or organization. So unless you are an institutional trader, you are a retail trader. ************************************************* This brings me to a very common misconception in the Forex world – the idea that the market closes on weekends. In truth, the Forex market never closes. The only thing that closes is the ability for retail traders to participate. This is what creates so called “gaps” when the market opens at the beginning of the week. It’s simply the result of your broker updating their charts from last week’s price action to the current price action at the start of the trading week. For now, just know that the market never closes due to the needs of international trade, as well as the needs of central banks and global industries to conduct business. So although the ability for retail traders to participate is halted over the weekends, the Forex market as a currency exchange is alive and well. There are various sessions that occur around the world which make up the Forex hours each day. Let’s take a look at those market sessions Because this is a 24 hour market, there is always at least one active trading session. There are even times when these sessions overlap. The easiest way to visualize how these Forex market sessions operate is to imagine the earth relative to the sun. Wherever the sun is shining, the Forex market is open. This is of course a simplified way of thinking about it, but it does help to visualize the Forex hours in this way. A trading week consists of the following major sessions: -- - - Session - - - - - - - - - Duration (GMT/ET) Sydney (Australian) - - - - - GMT: from 10:00 PM GMT to 7:00 AM GMT - - - - - - - - - - - - - - - - - - ET: from 5:00 PM ET to 2:00 AM ET Tokyo (Asian) - - - - - -- - - GMT: from 12:00 AM GMT to 9:00 AM GMT - - - - - - - - - - - - - - - - - - ET: from 8:00 PM ET to 4:00 AM ET London (European) - - - - - - - - - GMT: from 8:00 AM GMT to 5:00 PM GMT - - - - - - - - - - - - - - - - - - ET: from 3:00 AM ET to 12:00 PM ET NewYork (American) - - - - - - - - --GMT: from 1:00 PM GMT to 10:00 PM GMT - - - - - - - - - - - - - - - - - - ET: from 8:00 AM ET to 17:00 PM ET Greenwich Mean Time (GMT). Eastern Standard Time(ET). As you can see from the chart above, there are several market sessions which overlap. The most obvious, and the most heavily traded, is the London / New York overlap. This is when liquidity is at its highest as many Forex market participants prefer trading during this time. But like most things, it’s all relative to your trading style as well as your lifestyle. Obviously if you’re located in a part of the world where the London / New York session overlap occurs at 3 AM, this may not be the most advantageous for your lifestyle. The great thing about trading price action on the higher time frames is that Forex hours and market sessions don’t particularly matter. For example, if you spot a bullish pin bar on the daily time frame, you would simply set your pending order and let the market decide what becomes of it. It doesn’t particularly matter which session triggers the order. But in the lower time frames Learning the details of each session is key to identify market liquidity levels and spot the optimal times to place an order. That’s why in this article we will review the Forex market hours and the best times to trade. Let’s begin! The four global sessions Sydney Session Tokyo Session London Session New York Session Let’s look at the sessions one-by-one and see what exactly happens over a 24-hour period on the Forex Market. SYDNEY SESSION If we go from right to left (just as the sun rises – from East to West), then you will notice that the first major session to open is the Sydney Forex Market session. This session is open from 10:00 PM GMT to 7:00 AM GMT or from 5:00 PM ET to 2:00 AM ET. Despite the low market volume versus other major sessions, when Sydney opens is when the Australian Dollar and New Zealand Dollar , in pairing with the US Dollar, get to the trading action. TOKYO SESSION The Tokyo session follows shortly after. This session is also called the Asian session , because right after Tokyo large economic hubs like Singapore and Hong Kong start waking up. The Asian session starts around 12:00 AM GMT, when most of Europe is in a deep sleep. This is why you often hear European traders talking about waking up at 3 AM to trade the Asian session before going back to bed. Also, you may have already noticed that some Forex sessions overlap quite significantly. For example, the Australian session and Asian session. You can use this to your advantage knowing that pairs like AUDJPY and NZDJPY will have the highest volatility during the Forex Market Hours of these two sessions. LONDON SESSION Undoubtedly, London is the Economic Centre of Europe, and it’s just natural that the European session is also called the London session . Moreover, by the time the Brits wake up, other major economic hubs like Frankfurt, Luxembourg and Zurich have already started into their Forex Market Hours for the day. An interesting observation is that the Forex Market Hours of the Tokyo and London sessions overlap for approximately 1 hour (varies for other European countries). You can (and probably should) use this fact to your advantage. This means that all the crosses of European currencies and the JPY will have the highest volatility at the start of the European session. So if you are trading the GBPJPY you can simply carry out a few powerful trades between 8:00 and 9:00 AM GMT, and then you are free for the day. NEW YORK SESSION Forex market hours of the US start with New York. This is because New York is one of the biggest financial centers in the world as well as being the East-most major city in America. The American session includes other major economic hubs such as Chicago (World’s largest derivative market), Toronto (Canadian financial hub) , and others. Market volume increases significantly as New York and London sessions, the two World’s biggest finance centers, overlap. The American session starts when Europe is only half-way through. Also, please note that you are going to get an extremely fast-paced and volatile market. Volume traded during the New York and London sessions represents 50% of all forex trades in a day. A lot of the major pairs like EURUSD, GBPUSD and USDCHF experience massive movements and specific patterns during this time. Finally, you can see that although the New York and Australian sessions don’t overlap, they follow each other back-to-back, with a break during weekends. As you could see from the information above, there are three main overlaps when you can see higher market activity, representing the best times for Forex traders: The New York and London Overlap: from 1:00 PM to 5:00 PM GMT The Tokyo and London Overlap: from 8:00 AM to 9:00 AM GMT The Tokyo and Sydney Overlap: from 12:00 AM to 7:00 AM GMT Advantages of a 24-Hour Market: It offers the ability to trade at any time of the day regardless of where you live There are very few gaps from day to day, unlike the stock market More liquidity even during slower sessions Disadvantages of a 24-Hour Market: The 24 hour nature of the Forex market can lead to traders over-thinking their positions The Forex market requires more self-discipline to take breaks away from trading due to the market never closing The fact that the Forex market never sleeps means it’s easy to overtrade. Instead of trading for a few hours each day, you may find yourself waking up early or staying up late just to place trades. That’s a bad idea! Furthermore, many new traders find it hard to take breaks from the market. They feel the need to monitor their positions 24-hours a day. This is one of the more destructive habits of new traders and is enabled by the fact that the Forex market never closes. The good news is that these disadvantages are easily cured by a well-structured Forex trading course, discipline and no small amount of practice. WHAT ABOUT WEEKENDS? The weekend is the best time for planning. No open markets, no news, no economic events to disturb you. Ideally, it would be best if you don’t leave short term open positions over the weekend, while the Forex market doesn’t move over the weekend, there might be expectations on economic events that influence prices. Elections, referendums, or similar events may cause market gaps, which can delay the trigger of StopLoss orders. In other words, the broker will close the trade when there’s a market, at the first available price, not at the one specified initially. Scalpers, swing traders, and investors have a different time horizon . For this reason, they may have different expectations regarding the duration of a trade. Scalpers will strive for precision and accuracy. However, swing traders will strive to get the right market direction. Finally, investors will choose the time, rather than price, for positioning. You should assess the risk to take the following week. This will depend on your trading strategy and profile. CONSIDERING MAJOR ECONOMIC EVENTS One of the main reasons why the Forex market moves come from economic data or news. Fortunately, these events are scheduled in the economic calendar . Then, traders know in advance that markets get volatile during specific hours of a day. The impact of an economic event like the Non-farm payroll (NFP) in the US can alter the market’s usual behavior during the week. So it is always handy to keep an economic calendar while planning your trading week. Final Words I hope this lesson has shed some light on the subject of Forex market hours as well as the various market sessions that make up a 24 hour period. Here are a few key points to keep in mind: Support me by pressing like button . The Forex market is a 24 hour market that technically never closes Retail traders are those who trade for their personal account Retail trading hours in the Forex market are between 5pm EST on Sunday until 5pm EST Friday There are 4 market sessions that make up the Forex market hours – London, New York, Sydney and Tokyo Whatever your trading strategy, it is always beneficial to keep in mind the Forex Market Hours of the Four Forex sessions. Different sessions are dominated by different types of traders, banks, governments and, as we saw, – currency pairs. Taking this into account will certainly give you a competitive advantage. Thanks for Support likes and follow
Education
by TaherJalili
4
Psychology behind Ascending and Descending Triangles PatternJust as with ascending triangles, most of the times, the price will break the horizontal support line, and continue with the move lower. there is usually psychology behind every chart pattern ; and ascending and descending triangles are no exception. Follow me closely as we will now ‘investigate’ the PSYCHOLOGY behind ascending triangles : To make the analysis easier, let’s think of the ascending triangle pattern as a visualization of an ongoing battle between the bulls (#buyers) and the bears (#sellers). The bulls keep pushing the stock up in price until they get overpowered by the bears/sellers at the horizontal resistance level. It is at that resistance level that bears/sellers attempt to push the price down. Though sellers are somehow successful in pushing the price down, they are however unable to push the price to the previous low levels, as bulls/buyers are persistent, and the price sets a higher low (bottom trend line). This pattern continues until the price action becomes confined to the vertex of the triangle, representing a pivotal moment in this battle. At this point, either the bears will win, and the stock will break the bottom trend line, or the bulls will win and break the horizontal resistance line. If history is anything to go by, this pattern favors the bulls, and if the horizontal resistance line is broken, the bulls will be able to push the price up, triggering a breakout. This same psychology also applies to descending triangles, but in reverse . Now let’s looks at how we can to make money from this chart pattern: 1. Wait for the Breakout –we should wait price to break above the horizontal resistance line before placing a trade. 2. Lookout for Volume – High volume usually represents conviction behind a move, indicating that a large number of traders want a position in the stock. While above average volume is not necessary for an ascending triangle pattern breakout, it may increase the likelihood of a stronger move. 3. Look for Confirmation – If an ascending triangle breakout is genuine, the flat line resistance level should become a support level. If the stock starts to pullback after the breakout, you should look for the previous resistance level to hold as support. This will help confirm the legitimacy of the breakout. It also allows traders who missed the initial move to take a position 4. Have an Exit Plan – All trades require an exit plan for both favorable and unfavorable outcomes. For ascending triangles, Stop loss should typically be placed just below the previous horizontal resistance (which will now be acting as support). Thanks for Your Likes & Support & Subscribe....
BITSTAMP:BTCUSDEducation
by TaherJalili
THE ASCENDING AND DESCENDING TRIANGLE CHART PATTERN Ascending triangles are classified as continuation Patterns . Here are the key elements that make up an ascending triangle: 1. Bottom Trend Line(Support) – An ascending triangle is characterized by a bottom trend line that is formed as the price continues to set higher lows. The more touch points on the trend line, the more reliable it will be. 2. Horizontal Resistance Line – An ascending triangle also contains a flat horizontal resistance line that is formed as the stock continues to reject its previous highs (for a given period). Once again, the more touch points on the resistance line, the more reliable the pattern will be. You must be wondering how the chart pattern get to be formed? What happens during the formation of an ascending triangle is that there is a certain level that the buyers cannot seem to break ( red resistance line ). However, as evidenced by the higher lows ( green uptrend support line ), buyers will gradually push the price up, hence we end up with an uptrend of higher lows. As buyers and sellers keep putting pressure, a breakout will become inevitable. Though a price breakout is inevitable, the big question is, “ Who will break the price, buyers or sellers? Will the buyers be able to break that resistance level, or will the resistance be too strong?” Well, the answer is, most of the times the price will break the resistance area and go up. However, it is not always the case, sometimes, the resistance is too strong for buyers to break. Now let’s look at its inverse, the DESCENDING TRIANGLE CHAT PATTERN In a descending triangle chart pattern, as can be seen on the BTCUSD chart above, there is a string of lower highs which forms the upper line (red resistance line). The lower line is a support area (green horizontal line) in which the price seems to be failing to break. Just as with ascending triangles, most of the times, the price will break the horizontal support line, and continue with the move lower. Follow me closely as we will now ‘investigate’ the PSYCHOLOGY behind ascending triangles: To make the analysis easier, let’s think of the ascending triangle pattern as a visualization of an ongoing battle between the bulls (buyers) and the bears (sellers). The bulls keep pushing the stock up in price until they get overpowered by the bears/sellers at the horizontal resistance level. It is at that resistance level that bears/sellers attempt to push the price down. Though sellers are somehow successful in pushing the price down, they are however unable to push the price to the previous low levels, as bulls/buyers are persistent, and the price sets a higher low (bottom trend line). This pattern continues until the price action becomes confined to the vertex of the triangle, representing a pivotal moment in this battle. At this point, either the bears will win, and the BTC will break the bottom trend line, or the bulls will win and break the horizontal resistance line. If history is anything to go by, this pattern favors the bulls, and if the horizontal resistance line is broken, the bulls will be able to push the price up, triggering a breakout. Thanks for Your Likes & Support & Subscribe....
Editors' picks
BITSTAMP:BTCUSDEducation
by TaherJalili
17
smart contractA smart contract is a computer program or a transaction protocol respectively, which is intended to automatically execute, control or document respectively legally relevant events and actions according to the terms of a contract, of an agreement or of a negotiation. The objectives of smart contracts are the reduction of need in trusted intermediators, arbitrations and enforcement costs, fraud losses, as well as the reduction of malicious and accidental exceptions. Vending machine is mentioned as the oldest piece of technology equivalent to smart contract implementation. 2014's white paper about cryptocurrency Ethereum mentions Bitcoin protocol to be a weak version of the concept of smart contracts as defined by Nick Szabo. Since Ethereum, various cryptocurrencies support scripting languages for more advanced smart contracts between untrusted parties. In the cryptocurrency space, smart contracts are digitally signed in the same way a cryptocurrency transaction is signed. The signing keys are held in a cryptocurrency wallet.
COINBASE:ETHUSDEducation
by TaherJalili
What is momentum?Momentum is another word for how the price on your charts moves. Momentum analysis, though, is one of the most important skills any trader can learn. What is momentum? First of all, we need to understand what momentum actually means but this is straightforward. Momentum = Trend strength There are two ways of looking at momentum. The first one just looks at the overall trend strength. When the price is in a strong or healthy trend, traders say that the momentum is bullish or bearish (in a downtrend). When we come to the micro level later, we will see that momentum also exists when we just look at individual candlesticks. A long candlestick without wicks (shadows) usually is considered a high momentum candlestick.
BYBIT:BTCUSD.PEducation
by TaherJalili
2