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4 Responses to “what is the difference between momentum and trend in forex market?”
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Watch this video about one of the very best FOREX trading systems out there
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Momentum
The amount of acceleration of an economic, price, or volume movement. A trader who follows a movement strategy will purchase stocks that have recently risen in price.
Momentum indicators
Indicators used in market analysis to quantify the momentum of upward and downward price movements.
Trend
The general direction of the market.
Trendline
A technical chart line that depicts the past movement of a security and that is used in an attempt to help predict future price movements.
So think of the difference like this. If you throw a ball; the first half of the ball’s momentum is strong and stronger than 2nd half. Then after throwing ball several times you see a trend of strength the first half and less strength the second half.
Momentum means movement and a trend means a pattern is developing.
not really sure, but you can check the site below. they can give you a live one on one help as you need or you can subscribe for a free e-book on forex market.
good luck.
momentum to me implies the movement is current (right now) and strong. a trend may exist on a pair but it may not be moving because pairs have movement cycles, then consolidations, then movements, then consolidations and it just keeps repeating. the trend dictates what direction. momentum is current movement (in my opinion). all 3 CAD pairs are in uptrends right now but they generally dont move until the USD and CAD session. they consolidate in between.
good trading
mark mc donnell