This is the next article of my Price Action serie. You can find the previous ones here :

5 Easy Price Action Strategies
Trends! (ultimate Price Action Guide)

Lets start for today! Here is additional PA strategies for you!

Momentum Gain vs Momentum Loss

KEY TAKEAWAYS

• Momentum investing is a trading strategy in which investors buy securities that are rising and sell them when they look to have peaked.

• The goal is to work with volatility by finding buying opportunities in short-term uptrends and then sell when the securities start to lose momentum.

• Then, the investor takes the cash and looks for the next short-term uptrend, or buying opportunity, and repeats the process.

• Skilled traders understand when to enter into a position, how long to hold it for, and when to exit; they can also react to short-term, news-driven spikes or selloffs.

• Risks of momentum trading include moving into a position too early, closing out too late, and getting distracted and missing key trends and technical deviations.

Momentum


When trend trading, you want to get into trades with momentum gains to ride the wave, where as when trading reversals you want to see momentum loss and slowing price.


Look for candles that get larger and larger in size per candle which shows price is gaining speed and movig a greater distance per candle which shows a heavy gain in momentum.

Wide swing of price

Look for wide swings of price to occur after price is moving very tightly together which shows the side pushing the trend is losing control and that the opposite side is gaining control.

Sideways Price Movement

Look for sideways price movement to occur after price is moving very thightly together which shows the side pushing the trend is losing control and taht there is indecision going on in the market.

Shrinking Candlesticks

Look for candles that get smaller and smaller in size per candle which shows price is losing speed and moving a shorter distance per candle which shows a loss in momentum.

Candle Color Change

In a downtrend you have all red candles in a row before a green candle appears, and in an uptrend you have all green candles before a red candle appears, which shows momentum loss.


I hope I can add you something with those articles!
Follow for more and please feel free to ask any questions in the comments :)