Description of 5 Minutes Intraday Method
Some currency traders are extremely patient and love to wait for the perfect setup, while others need to see a move happen quickly, or they will abandon their positions. These impatient souls make perfect momentum traders because they wait for the market to have enough strength to push a currency in the desired direction and piggyback on the momentum in the hope of an extension move.
However, once the move shows signs of losing strength, an impatient momentum trader will also be the first to jump ship. Therefore, a true momentum strategy needs to have solid exit rules to protect profits, while still being able to ride as much of the extension move as possible. The 5-Minute Momo strategy does just that.
What will you learn in 5 Minutes Intraday Method?
- The five-minute momo strategy is designed to help forex traders play reversals and stay in the position as prices trend in a new direction.
- The strategy relies on exponential moving averages and the MACD indicator.
- As the trend is unfolding, stop-loss orders and trailing stops are used to protect profits.
- As within any system based on technical indicators, the 5-Minute Momo isn’t foolproof and results will vary depending on market conditions.
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