Momentum Trading for Swing Traders

TIM THOMAS

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What is Momentum?

[{"selector":"#anim-e814e9fa-f105-41bd-b3fe-514e07965ba2","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f0bca591-dd31-4359-854e-985cab64d1c7","keyframes":{"transform":["translate3d(0px, 2156.94584%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-830df6e4-f83e-4737-86d3-ad79adc54ded","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e34050a6-8b63-49c3-9ce9-872409906df5","keyframes":{"transform":["translate3d(0px, 184.63493%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] If you’re a swing trader who wants to understand more about momentum trading, this story is for you. While I’ve written in detail about some of the key swing trading strategies, this post will also explain how to integrate momentum trading into your swing trading. I'll start by explaining what momentum trading is, why you might include it as part of a swing trading strategy. Read More

What is Momentum?

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What is Momentum?

[{"selector":"#anim-ac95e437-3cc8-4aff-b370-400eb99b6720","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0ae5d5b1-cd3c-4787-af29-37fc662799e7","keyframes":{"transform":["translate3d(0px, 2163.19595%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-89585a3a-0487-4fc2-a217-676c3a3402cb","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-985e69b0-fe9b-4ce1-8a96-fd23fbc668af","keyframes":{"transform":["translate3d(0px, 342.22218%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] So, thinking back to your science class at school, where P is momentum. By multiplying the mass of something by velocity, we get momentum. And that's the basic premise of momentum when it comes to the markets. Read More

What is Momentum?

[{"selector":"#anim-690102fb-b6b6-4dd7-b58c-b9bac32c9a6e","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ebbce56f-f844-4e45-ac73-ea5d4338a988","keyframes":{"transform":["translate3d(0px, 2163.19595%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d9cd249c-6358-42f3-983c-5d550d525d44","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cf093dd8-0dd5-4c3f-8b96-ec469b3206ae","keyframes":{"transform":["translate3d(0px, 204.51501%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Momentum is the rate of change of an instrument's price. We're not concerned about the direction of price; we're only concerned about the pace of the change itself. High numbers indicate the price is quickly increasing or decreasing value. Quick is a relative number to what's happened before. It's not relative to other instruments, other stocks, or other commodities. It’s relative to the price itself of that particular instrument. Read More

Momentum Follows Price

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Momentum can be a Confirmation Indicator

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Backtest #1: Momentum Trading Country ETFs

[{"selector":"#anim-cc056815-a382-432c-889d-eb21844b7391","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-da40478e-47ed-4a8c-875b-c267cd3fdd4a","keyframes":{"transform":["translate3d(0px, 736.91341%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-688ca6ff-a50d-4f19-959d-fa0f446a7f4c","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-5f762ca8-acf4-4f29-a5c2-5a2ec8e79515","keyframes":{"transform":["translate3d(0px, 232.31054%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] The basic principle of the first backtest was the premise that buying an ETF of a country's equity index that had previously performed well would produce profits. A portfolio was created of a variety of ETFs from those in Europe, Asia, South America, North America. This was a long-only strategy. Read More

Backtest #1: Momentum Trading Country ETFs (cont)

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Backtest #1: Momentum Trading Country ETFs (cont)

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TIM THOMAS

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TIM THOMAS

Learn to how integrate momentum trading into your strategy - Story

What is Momentum?

TIM THOMAS

What is Momentum?

TIM THOMAS

What is Momentum?

TIM THOMAS

What is Momentum?

TIM THOMAS

Momentum Follows Price

TIM THOMAS

Momentum can be a Confirmation Indicator

TIM THOMAS

Backtest #1: Momentum Trading Country ETFs

TIM THOMAS

Backtest #1: Momentum Trading Country ETFs (cont)

TIM THOMAS

Backtest #1: Momentum Trading Country ETFs (cont)

TIM THOMAS

TIM THOMAS

Swipe up to see the results and other backtests on the Momentum Trading blog post