newscalper wrote:Great pic and trading there. One thing that has me puzzled and may be a part of the puzzle for me...B is momo? As opposed to A? C i see as momo but A? I suppose as compared to the 3 bars before making a doji it could be considered pace starting down but is it actually momo?
Newscalper,
For a long time the definition of momo puzzled me. Mighty One originally stated, I believe, 2x the previous candle is momo. Well I took that literally and it puzzled me for a long time. I have reprogrammed my thought process to take momo as any area where price has stopped and then left. I read it as a story in my mind now as I trade. As you said you can see the combination of candles that made up the "a" mbar. After that period this is how I read them, the red one next to the #1 is where price stopped. #1 is more than 2x the previous, that one is pretty easy. The open of #1 is the zline and I think to myself, ok when that line gets broken, momentum has changed. So #1 is up, #2 then forms and breaks the open of#1, but is not 2x the size of the previous? But this is still momentum down to me, due to it engulfs the previous 2 candles. #3 closes up but doesnt break the open of#2 and there are no like colors to combine yet. Its like imagining #1 on top of #2, the green would not completely cover the red of #2 correct? So to me momentum is down. #4, made up of 3 candles, breaks the open of #2, doing a overlay you wouldnt even see #2, so to me no up momentum. #5 is simply a retrace into #4, price would have to close above the #4 before I would thing longs. 6-7 make up a down momentum. #8 is upward momentum but doesnt overpower the 6-7 downward momentum, then #9 does what?? It engulfs the previous 2 candles again! 9 and 10 break the 'a' zline...so now I know retrace then drop...
I have tried many ways in this thread to explain how I see, momo, momentum, mbars, from history trading, which is again looking to the past in relation to current price, waiting for the current price to overpower what has happened in the past. momo is more than 2x. It can be 2x, engulfing, railroad, morning star, these are all momo, or mbars to me. Its just a shift in power from buyers to sellers in which one of the two wins.
Hope this helps, I didnt mean to ramble.