Momentum Trend Channel Trading Strategy is mainly a trend following system designed for the trading forex market. It provides visual ichimoku trading system forex indicators for the rest of indicators used to identify the major trend.
One of the key tenets of technical analysis is that price frequently lies, but momentum generally speaks the truth. Just as professional poker players play the player and not the cards, professional traders trade momentum rather than price. From signaling the trend to setting the price, momentum and volume are the best friends and forex traders can strive to have in the marketplace. So let’s understand a little more and see whether you can use this tool in furthering your currency trade and getting the maximum return on your investment, or not.
Demo trading is like the gateway to a great forex career. Here you can test how well your predictions work, you can improve your strategies without risking anything in the market, and you can refine and improve the emotional side of your psyche to better suit the market itself. Real trading is, of course, an altogether different task from demo trading, but your chances of succeeding in the former are a lot greater if you can do well in the latter. Volume is a popular tool among traders, but most look at volume over time.
When you plot volume against price scale, then a completely different picture emerges. There are prices that have a large amount of volume and prices that have much less volume. Volume Price Level Trading is not new, in fact, it is as old as futures trading or even the stock market itself, long before computers existed and the only ticker. Many argue in Forex that volume is a meaningless indicator because it only indicates a broker’s volume. There are two problems with that argument. The effect on price is that high volume tends to be attracted or work within a price range around a price level. High volume is high market interest at a price level, low volume is low market interest in a price level.
The market mans that for every buyer there is a seller. Forex is not random price moves. Price moves because someone is selling and someone is buying at a price. The more popular a price for buyers and sellers, the more volume. Volume in Forex is a broker’s tick volume data from its own database. This means that volume is a record of every trade, 1 trade, 1 volume. Volume is not the quantity traded.