Best Trading System (Only Momentum)

momentum price system

Hello, I have been using the price momentum trading system since the past six months and continue to make profits from it. This is a very simple system and one of the success metrics I'm using. The only momentum indicator. I get the idea from somewhere and shape it from time to time by constantly changing and testing. I share my trading system below.


Short entry:
Prices generally move in the direction of momentum, but if momentum guides prices and then starts to fall as prices rise, there is a chance that the market will peak at some point in the future and prices will fall.

1. Draw divergence lines on the price bar and momentum indicator. (For best results, use 8-28 candlestick divergence).
2. Mark the highest price in the divergence line as C
3. Label the lowest value of momentum in the divergence line F.

Entry point <br> When point F is broken, trade with two hands at the bar close.

Stop loss:
When the price hits price C, exit all trades.

Profit:
TP1: The difference between point C and the entry price. (Exit a lot and raise stop loss to breakeven).
TP2: 2 times of TP1 (at this time, a trailing stop loss of 50% of the profit after the closing of each candle line is used;
TP3: Four times of TP1. (When price reaches TP3, use 75% of profit as stop loss until stop loss is reached)

Long entry:
Just like the price falls in the direction of momentum, and then the momentum rises and the price falls, then it is possible that the market will bottom in the near future and the price will rise.

http://charts.mql5.com/1/377/usdchf-...t-oracle-2.png

http://charts.mql5.com/1/377/usdchf-...t-oracle-2.png

1. Draw divergence lines on the price bar and momentum indicator. (For best results, use 8-28 candlestick divergence).
2. Mark the lowest price in the divergence line as C
3. Label the highest value of momentum in the divergence line F.

Entry point <br> When point F is broken, trade with two hands at the bar close.

Stop loss:
When the price hits price C, exit all trades.

Profit:
TP1: The difference between point C and the entry price. (Exit a lot and raise stop loss to breakeven).
TP2: 2 times of TP1 (at this time, a trailing stop loss of 50% of the profit after the closing of each candle is used;
TP3: Four times of TP1. (When price reaches TP3, use stop loss of 75% of profit until stop loss is reached).

I will provide charts and trading examples in my next article to better understand this momentum system. In my past experiments this has been the best money management to have two hands, one for TP1 and one for trailing. Any improved money management with better risk/reward would be welcome.

Muhyiddin