FOREX THEORY
Momentum Tricks
Wait for a crossover
This ain’t so much a trick as it is a rule. Just wait for a
crossover of the momentum indicator. This would indicate a potential shift in
momentum from buying to selling or vice versa. The main reasoning behind this
is that you are waiting for top or bottom and these can’t be formed unless a
crossover is made!
In the chart, the pair showed lower highs while the
stochastic already made higher highs. Now that’s a bearish divergence there and
it sure is tempting to short right away
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