Momentum divergences

December 15th, 2007 expert Posted in FOREX TRADING ENTRY STRATEGIES |

Online Forex Trading concepts: Momentum divergences, Sell divergences, buy divergences, trendlines.

Momentum divergences refers to situations that develop in where the trends (as determined by trendlines joining pivot points  (Turning points) on the price charts and on the momentum charts) on the price charts differ from those on the momentum indicators.

These are very strong signals but are not triggers to trade (refer to triggers and signals on this site).

These signals should not be used in trending markets.

Dr Alexander Elder in his book “trading for a living refer to these signals as the strongest trading signals in trading.

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