Combined Momentum Range and Slope Analysis
In this lesson of chapter 12, we will review the application of combined momentum range and momentum slope analysis. This approach allows us to gain early insights into the formation and strength and weaknesses of an established trend.
Previously, we learned the concept and application of each of the simplified methods of momentum analysis: MRA and MSA, separately. In this lesson, we will explore the combined application of both methods and observe how they often complement each other, as illustrated below:
Now, let’s practice applying the combined methods of MRA and MSA to real market charts, as illustrated in this example:
By utilizing these two methods together, we can obtain valuable early insights into the strengths and weaknesses of trends. It is essential to conduct this analysis in a forward test manner, simulating live market conditions on the price chart. Please allocate dedicated time for practice this lesson in order to develop and refine your momentum analysis skill. Utilize various techniques such as forward-testing,
market replay, and live demos to acquire the essential PAAT skills necessary for
success in trading.
