How to do momentum trading ? ....

Traderji

Super Moderator
#2
Hey friends ... how to find out the shares which are in momentum ? ...

which indicators helps to find the true momentum. ?
You can use the ROC indicator to find securities in momentum. For example you can run a query in MetaStock using the formula roc(C,21,%) to find the stocks with the strongest momentum in the last on month.

Momentum trading works on the principle of 'Buy High to Sell Higher". So one buys a strongly trending stock to sell at a higher price.

You can read more at http://www.investopedia.com/articles/technical/092401.asp
 
#3
at what level does one exit after placing a trade based on momentum?does one take an exit decision after acertain gain or a certain time interval?
 

RSI

Well-Known Member
#4
at what level does one exit after placing a trade based on momentum?does one take an exit decision after acertain gain or a certain time interval?
Exits can be (any of the following cases)

1. Break of support (if the stock is broght in upward momentum)/resistance (if stock is shorted in downward momentum)

2. Break of low/high (as the case may be) of certain number of bars (say 3 bars or 5 bars). I am not a great fan of this sort of exit.

3. Trailing stop losses.

Hope this helps
Regards
R. S. Iyer
 
#5
Exits can be (any of the following cases)

1. Break of support (if the stock is broght in upward momentum)/resistance (if stock is shorted in downward momentum)

2. Break of low/high (as the case may be) of certain number of bars (say 3 bars or 5 bars). I am not a great fan of this sort of exit.

3. Trailing stop losses.

Hope this helps
Regards
R. S. Iyer
thankyou RSI thats quite helpful
 

Similar threads