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Nov 10 2009

Timing an Entry

Posted by admin in Financial market

Momentum is a convenient way of identifying a good entry point caused by a price reversal during a trend. By choosing a much shorter time period for the momentum calculation, for example 6 days, to work in conjunction with a longer trend of 30 to 50 days, the momentum indicator will show frequent opportunities within the trend. The short time period for the momentum calculation assures you that there will be an entry opportunity within about 3 days of the entry signal; therefore, it becomes a practical timing tool.