Short Term Momentum Forex Strategy for Impatient Traders!

Short Term Momentum Forex Strategy for Impatient Traders!

Many new forex traders lack the patience to wait days for a trade to develop. These types of traders want the trade turn into a profit within minutes of entering into the trade. If it doesn't, they usually abandon the trade as they lack the patience to follow it through. These types of traders are more than happy to make 10 pips multiple times a day instead of making something like 100-200 pips in a trade with the potential of the trade going against them in the beginning.For these type of traders short term momentum trading is the best forex trading strategy. The aim of this short term momentum trading strategy is to hit the profit target as early as possible. This is achieved by entering the market long or short when the momentum is on your side.In this short term momentum forex trading strategy, we will be using the 20 day Exponential Moving Averages (EMA), the 100 day Simple Moving Average (SMA) and the Moving Average Convergence Divergence (MACD). The exponential moving average places more weight on the recent price action as compared to the simple moving average which is what we will need in this short term momentum trading strategy.You will be using the default setting for the MACD. These setting are First EMA=12, Second EMA=26 and the Signal EMA=9. You will be trading on the 5 minutes chart.Look for a currency pair that is trading below the 20 day EMA and the 100 day SMA. You will wait for this currency pair to start trading above the two moving averages by at least 15 pips.Observe the MACD. If the MACD turns positive enter into a long trade within 5 candles of it turning positive. You should place the stop loss at the low of the candle that was the first above the two moving averages.Take profit on half of the position when the currency pair has moved in favor of your trade by the amount risked and move the stop for the remaining position to breakeven. This is done to make sure that you only trade with your profits for the remaining positions and you are no longer vulnerable to a loss. Trial the stop for the rest of the position with a 20 day EMA minus 15 pips!In case, you find the currency pair trading above the two moving averages. Wait for it to start trading below the two moving averages by at least 15 pips. Observe the MACD. When it turns negative enter into a short trade within 5 candles of it turning negative. Place the stop loss at the high of the first candle that appeared below the two moving averages. Exit half positions when the trade goes in your favor by the amount risked and trail the rest of the position with a trailing stop with 20 day EMA plus 15 pips!

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