forextra: Momentum trading is a particularly popular approach to forex. Momentum trading is a strategy that aims to capitalize on the continuance of existing trends in the market.
The momentum investor believes in spotting large price movements.
These large and regular movements come from trading psychology. Traders simply react, or don’t react, to important events in the news or economic world.
The result is that they move in a group in a single direction, and this has a lot of money moving in the same way – it pushes the market in a given direction, and creates momentum.
Momentum strategy works…
from Forex Trading Co – Currency Markets Explained: Tips, Strategies + More For Online Traders