Know in this lecture will be discussing the momentum indicator. Now, this is not a very good indicator that you can use as a beginner trading forex. This is also an indicator that I use when I’m trading for it. This is a very very good indicator to use. So how do you use the momentum indicator. You use the momentum indicator of the trade market divergence. And I’m just going to explain what do I mean by divergence is when the market is making then higher high. While the indicator is making a low or high.
The market is making a higher high and indicator is making a low or high. That’s what you call a divergence. And in this case that’s the cell signal. And if you had sold the market here then you would have made maybe 200 pips. And I’m just going to show you some more examples of divergence. So here we have a very good example of divergence.
You would see the markets making lower lows. While the momentum indicator is making higher lows. So this is a lovely example. Nice divergence. And you can say as a result. Market rallied. So it is a lovely example of how to use the momentum indicator Iraq or some other lovely examples of traits you could’ve taken Hughson the momentum indicator.
So here the market is making lower lows and on the momentum indicator we are making higher lows divergence by the market anywhere in this region. And that’s one. And Jed Pip’s on engine 30 pips up here to market makes again divergence sell the market anywhere in this region because here let me draw the line here.
The market is making higher highs. While the momentum indicator is making lower highs K lower highs Mark is making higher eyes I’s momentum indicator is making low eyes that say divergence and you can see the result is the market falling over tree and Pip’s.
Now, this was a fundamental announcement. But nonetheless you could have entered this trade based on the momentum indicator. So remember you can combine these indicators to get the momentum indicator.
And some of the other indicators plus your knowledge of the candlestick patterns trend lines support or resistance into one strategy to get the best results. So the momentum indicator is a very good indicator to use when you’re trading for x. You can say the market is making higher highs say higher eyes and the momentum indicator is making lower highs. And as a result we see the market fell. So the momentum indicator is a very good indicator that you can use as a big in a trading Forex.