space
space
space
space
MOMENTUM CYCLES Overbought-Oversold Convergence-Divergence Accumulation-Distribution Contraction-Expansion
space
space
chart
space
Trends rarely move in a straight line. As price surges forward, it pauses frequently to retrace, test and rest. The pull of countertrend shakes out profit takers, losers and disbelievers. It also allows new participants to jump on board in hopes of a quick new price surge. This continuous momentum cycle forms a timing core for skilled traders to execute their positions. Use repeating chart patterns to uncover these important swing points. Then align long or short positions in harmony with that swing.
Next Step:
Momentum Cycles