In this video I show you a winning strategy based on renko trend momentum. Setup Strategy
Renko chart with ATR 14 periods.
Simple moving average 75 periods high.
Simple moving average 75 periods low.
Simple moving average 6 periods, close.
Stochastic oscillator (5,3,3).
Trading rules Renko Trend With Momentum
Buy
Renko box above the channel.
Stochastic oscillator reaches the oversold area and crosses upward.
The renko box above moving average 6 periods.
Sell
The other way around
In the video there are many examples of trades.
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Renko Momentum Trading, Renko Trend With Momentum.
Volume is the amount of a particular possession that is traded within a provided amount of time. Volume is not the variety of purchases, however the number of possessions traded– so, if five buyers acquisition one possession each, it looks the same as if one customer acquisitions 5 of the asset.
Volume is essential to Momentum traders, as they require to be able to go into and leave positions quickly, which relies on there being a stable stream of customers and also sellers in the marketplace. If a market has a high number of buyers and vendors, it is called a fluid market as it is much easier to trade a possession for cash. Whereas if a market has a reduced variety of purchasers as well as sellers, it is considered as illiquid.
Volatility is Momentum Trader’s traders’ bread and butter. Volatility is the level of adjustment in an asset’s price– if a market is extremely volatile, it implies that there are big cost swings, while a market with low volatility is fairly steady.
Momentum investors will seek out unpredictable markets, in order to capitalize on short-term fluctuates in a possession’s value. As Momentum trading attempts to capitalise on volatility, it is essential to have a suitable risk monitoring strategy in position to shield your trades from adverse market activities. This ought to consist of quits and limitations.
Momentum trading techniques are usually concentrated on short-term market movements, but the period of a profession can depend on the length of time the trend keeps its toughness. This could make is suitable for traders that employ longer-term styles such as placement trading, as well as those who prefer short-term designs, such as day trading and scalping.
Exactly how to begin Momentum trading
Determine the property you have an interest in
Create The Momentum trading approach based upon technological indicators and analysis
Practise trading in a safe atmosphere making use of an IG demo account
Start trading on online markets by opening up an account with IG
Additionally, you can find out more concerning trading approaches and also indications with IG Academy’s variety of on-line courses.
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