Today’s quick trading strategies lesson is overall momentum and immediate momentum. So what is overall momentum? Overall momentum is something that you look at.
It could be within a day or it could even be within a few days. For day traders, we meant we watch a lot of what happens within a few days close to us rather than, you know, a year or a longer timeframe, because we want to focus on what’s happening at that moment because our trades are so much smaller.
So this is pretty much a couple of days worth of data right here. And the overall momentum is very obvious. It is straight up and it’s actually straight and nice, right? It’s strong overall momentum.
But as an intraday trader, this is obviously an overall momentum.
This is where I watch everything happen with my 52 week period.
EMA line. Now, look what happens here.
Even though this is still overall going up, the immediate momentum that I am watching right now is headed down after it has crossed my EMI line with a lot of definition and a lot of strength. I am now going to be looking for shorts rather than for longs, which has been through the overall momentum.
So basically the overall momentum. Could be a lot smaller. Or it could change completely. Or it could continue in the same direction. But in this short period of time, I’m going to notice that there are several good trades that I can look out for and this is a perfect example of.
Immediate momentum. And overall momentum.
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