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Buy Sell Momentum Filter Forex Trading Strategy

Momentum trading is a very profitable type of trading strategy. Momentum trading setups typically have high accuracy compared to other trading setups and have potentially good risk-reward ratios. This combination of a good risk-reward ratio and win rate is a key factor for a profitable trading strategy.

However, there are also many momentum traders who overlook the power of momentum strategies due to their lower win rates. This is because the momentum strategy is a double-edged sword. A momentum strategy can see price push further in the direction of setting the momentum, but when trading against strong support or resistance, price can bounce and reverse slightly. Imagine a ball is thrown with full force. If it hits something smaller or something that can be easily penetrated, there's a good chance the ball will break it. If it hits a hard wall, it bounces pretty hard. Momentum traders should also take this into account when trading. You should not trade against strong support or resistance.

One way to reduce the chances of price bouncing after a momentum signal is to trade with the trend. Because when the market is trending, the price will usually break through a support or resistance level unless the trend momentum slows down.

Buy Sell Filter Momentum Forex Trading Strategy is a momentum trading strategy that takes into account the direction of the trend and the strength of the trend. It uses technical indicators that can help traders identify the best conditions for setting high probability momentum.

Buy Sell Arrow Scalper

Buy Sell Arrow Scalper is a trend following technical indicator designed to help traders see trend direction and trend reversals.

This indicator is a simple indicator that draws a gear line. The color of the line and the position of the gears change depending on the direction of the trend detected by the indicator.

When the trend has a bullish bias, the indicator draws a blue dodger line with teeth below the line. When the trend turns bullish, the line turns red and the gear shifts to the top of the line.

It also draws arrows indicating the direction of the trend when it detects a trend reversal.

Sell ​​Buy Sell Arrow Scalper is designed to help traders scalp the Forex market. However, it can also be used on different time frames with different trade durations.

It can be used as a trend direction filter by taking trades that converge with the Buy and Sell Arrow Scalper direction.

It can also be used as a trend reversal signal. Traders simply use arrows, line gear shifts and line color changes as trend reversal signals where they may enter a trend reversal configuration.

RSI filters

The classic Relative Strength Index (RSI) is a versatile indicator that can be used in a variety of ways. It provides information on trend direction, average reversal and momentum with just one oscillator.

The original RSI is represented as an oscillating line in the range from 0 to 100. It also often scores 30, 50, and 70.

The 50 level is often used to identify general trend distortions. When the RSI line is above 50 then the market has a bullish bias, while when the RSI line is below 50 the market has a bearish bias. Many traders also add 45 and 55 as support and resistance levels.

Levels 30 and 70 are both used to identify overpriced market prices. When the RSI line is below 30, the market is oversold. When the RSI line is above 70, the market is overbought.

However, momentum traders see it differently. If the RSI line drops below 30, the market may gain bearish momentum, whereas if the RSI line breaks through 70, the market may gain bullish momentum.

The RSI filter is a momentum indicator based on the concept of the momentum of the RSI indicator and the support and resistance levels of 45 and 55. It attracts positive bars indicating bullish momentum when the RSI line breaks above 70 and continues to draw positive bars until the RSI line drops below 45. This is also interesting negative bar indicating bearish momentum when the RSI line dips below 30 and continues to attract negative bars until the RSI line breaks above 55.

trading strategy

This trading strategy is a simple momentum trading strategy that generates trading signals that are consistent with the overall trend direction.

To identify the direction of the trend, we use the 50 period Exponential Moving Average (EMA). The trend is based solely on the location of the price action in relation to the 50 EMA line and the slope of the 50 EMA line.