momentum question.

C

cashclay

what is the best way to tell if momentum is increasing ina stock or decreasing? i just watched this video and the trader said if a stock is rising in its price and losing momentum then this is a good sign of reversal. but then he never explained how to see or tell if momentum is rising or declining
 
cashclay said:
i just watched this video and the trader said if a stock is rising in its price and losing momentum then this is a good sign of reversal. but then he never explained how to see or tell if momentum is rising or declining
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  1. Volume: If volume decreases on rising price, it means less market participation and a reversal is high.
  2. Price stall: $3 --> $2 --> $1 --> $0.50 (Of course, price never moves as nearly as clean as described, but you get my point).
 
Redneck said:
The absolute best way - is with your eyes..., once you train them.., then come to trust them

Provides real time / accurate feedback

++++++++++++++++++++++

Simply losing momentum is NOT a sign of a reversal - great way to go broke thinking / trading such


RN
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This!
 
Do yourself a favor and and find a decent software program that can backtest yours and every one else's beliefs. You may have to learn some basic programming,or understand the developers programming language. Most are pretty simple,just put the time in

Forget the eyeball nonsense




cashclay said:
what is the best way to tell if momentum is increasing ina stock or decreasing? i just watched this video and the trader said if a stock is rising in its price and losing momentum then this is a good sign of reversal. but then he never explained how to see or tell if momentum is rising or declining
More...
 
Ole timer advice from years gone by:

“In a bull trend never sell a dull market” and in a bear trend never buy a “dull market”

Doesn’t apply much to me as I scalp 1 to 8 points on 5m and 1m charts.
 
cashclay said:
what is the best way to tell if momentum is increasing ina stock or decreasing? i just watched this video and the trader said if a stock is rising in its price and losing momentum then this is a good sign of reversal. but then he never explained how to see or tell if momentum is rising or declining
More...

In 1 stock? Difficult. But you can keep an eye on the momentum of entire market by looking at the market internals, which i find very helpful.
 
Yeah,I'll make sure to train my eyes...

What's weird is not one IB or Hedge fund I worked at ever suggested ocular training...

Then again,you are the first person to suggest "risk to reward" is some bullshit term...

Carry on







Redneck said:
Condolences on your blindness

Maybe one day - but likely not

RN
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