New book by Larry Connors Click here Improve your trading - See how
| ||||||||||||||
|
||||||
The Forex Markets From Strongest To Weakest | ||||||
Forex Momentum Index Strategies
Here are four strategies to consider using with Forex Momentum Index:
 |
1's and 2's are possible candidates for long positions. 17's and 18's are possible candidates for short positions. You could potentially look at going long the currencies with a Forex Momentum Index level at 1 and/or 2, and potentially look at shorting the currencies with an Forex Momentum Index level at 17 and/or 18. The exit could be when the currency drops out of the green zones when you are long, or moves out of the red zone when you are short (please make sure you understand the possible weighting of the US Dollar on your positions. Your brokerage firm can guide you with this). |
|
|
 |
Look for upward and downward changes in the Forex Momentum Index level. A currency which has moved from weakest to strongest is telling you that money is flowing into this currency. You may want to track these currencies as the money flow could potentially continue. The same holds true for currencies dropping in ranking. A currency dropping from a stronger Forex Momentum Index level to a weaker Forex Momentum Index level is telling you that money flow is moving out of that currency. |
|
|
 |
Look at 1's & 2's on pullbacks, and look at 17's & 18's on upward pullbacks. One of the more popular ways to trade currencies is on pullbacks. Wait for a strong currency to pull back to some specific level and then look to enter. These entry levels can be pullbacks to moving averages, Fibonacci levels, or other popular pullback strategies. |
|
|
 |
Wait for reversal set-ups on the extremes, especially markets which have been strong or weak for a long period of time. If a currency is rated a 1 or a 18 for a sustained period of time, it could be reaching overbought or oversold levels. Many large reversals precede these conditions. Ideally, you'll want to short a currency which has been rated 1 for many hours and then begins selling off or dropping in ranking. The same holds true for currencies rated 18. If it's been selling off for many hours/days and then reverses, or its Forex Momentum Index level rises, it may be signaling a reversal is beginning. |
|
|
Need Assistance?
Toll-free 1-888-484-8220 ext 1
Outside the U.S., please call 1-213-955-5858 ext 1.
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
