Excessive Momentum Trading – Trading Systems – 11 December 2021

Excessive momentum is an important clue in our trading as well as in the sideways market. You can think of excessive momentum as the opposite concept of a sideways market. So why is excessive momentum such an important signal in our trading? Imagine you are pouring some milk into your cup. It’s okay until it’s bypassed. When the milk started to separate from the cup, we knew we needed to make some correction.

This standard concept can be applied to our trading as well. Simply put, excessive momentum can indicate that the market could go through some completely new action from the current trend. It could be a turning point opportunity or a reversal opportunity. Around this excessive momentum area, the market can be expected further. In addition, you have a chance to become an early beginner with a good profitable range.

Before, the trader did not have a good tool to get excessive momentum but now we have the excessive momentum indicator designed to automatically pick up excessive momentum in your chart. The good news is that this entry is more accurate with excessive momentum than with no excessive momentum. Hence, excessive momentum is the perfect place to place your trade. The excess momentum area is depicted as a triangle in the excessive momentum indicator.

At the same time, this excessive momentum area can be considered either an accumulation area or a distribution area in the volume difference analysis. You can also find the symptoms of the accumulation and distribution zone using the volume diffusion pattern indicator (paid and advanced version) or the volume diffusion pattern detector (free and lite version). You can also watch the YouTube video to learn more about the excessive momentum indicator.

YouTube video “Excessive Momentum Indicator”: https://youtu.be/oztARcXsAVA

YouTube video “Explanation of Excessive Momentum Indicator”: https://youtu.be/A4JcTcakOKw


This is the landing page for the excessive momentum indicator available in MetaTrader 4 and MetaTrader 5.




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