Momentum Silver Trends

What is a Momentum Trend?

A momentum silver trend is one that has more momentum than the earlier one, it can be plotted using a much steeper trend line than the one that was in place before. When a new line forms that's more steeper than a previous one we say that the trend has gathered extra strength & becomes much stronger. These types of set-ups require a different type of analysis.

In the xagusd trading example explained and shown below: Also when xagusd trading price is moving upwards within a channel, if it breaks the upward channel a stronger trend is initiated as illustrated in the illustration below. If as a trader your chart breaks an up silver trendline to the upside in an upward direction moving market like the one below, Do not Try to Sell, Buy More Contracts, Remember this silver trading tip it can make you a lot of money just like the way it did in the trading analysis below.

Channel Break Upward - More Momentum on Upward Market Movement

Using the same technical analysis example above we can also see how new steeper trendlines were shaped showing the trend was gathering momentum.

This is illustrated by the steeper trend lines which can be portrayed as the xagusd trading price progresses.

The newly shaped trend has more strength than the previous one as shown by the forming of the steeper trend line.

This forms trend B and C as illustrated in the illustration below portrayed using the MT4 technical analysis software, The momentum added a new steeper line as plotted on this chart.

This is shown in the xagusd trading example explained and shown below by the three lines A, B and C showing formation of stronger trends as the xagusd trading market continues to gain strength.

Silver Price Gaining More Strength

However, when the steepest trend line is broken then even all the others trend lines will most likely also be broken too. It is best to take profit once the steep most trendline is broken.

This technique can also be used by short-term silver traders like the day trader or the scalper, this pattern will oftenly form on the 5 minute & 15 min chart. This parabolic trend lines can be used to know where to take profit. One should immediately take his profit as soon as the steep most trend line is broken.

How to Trade These

The momentum silver trendlines are good analysis tools for figuring out where to set take profit early before other traders. This momentum trading setup occurs frequently on 1 minute, 5 minute and 15 minutes charts and therefore suitable for scalpers and day traders. For day trading which is most common? - the best chart to use is 15 mins sometimes 5 mins, For example after entering a short term trade either buy/sell and the xagusd trading market moves some pips in your favor and you identify this setup then it is best to exit once the steep most trend line is broken & take profit at that point.

Analysis Examples

For this example we shall use short term chart of minutes for plotting, when the set-up appeared as below, it was a good point to take profit.

Trading The Momentum Market Moves

In the above example a trader trading long would have waited until the steep most trend line was broken then closed the trade and taking profit at this place thus making a profit of 42 pips on this buy trade. One would have exited the trade position at the best time and thus avoiding the choppy market that followed.

What is it?

Sometimes a market moves in a parabolic formation, & this is seen when panic buying sets in and xagusd trading prices is driven vertical. During a parabolic up move, there is almost a complete absence of bears, which initiates a vacuum of buying. When this occurs traders dash to just get in to the xagusd trading market regardless of trading price, in fear of being left backwards. This move can make the largest xagusd trading price moves in the shortest amount of time, traders will put buy orders in this trading setup.

For this type of move it's best to keep buying - no need for analysis just keep buying.

This trend will last for months on end even upto 2 years, for this time just keep buying & as long as those weekly & monthly trendlines are holding just keep buying & buying.

When silver moves in this way, the highest level which is reached often marks the end of a move with trading prices not going back to the ultimate highs again for a very long time. When this point is reached & the most steepest trendline is broken it is best to consider that as a trend reversal and it's best to take time off the xagusd trading market & enjoy your profits for a while before calculating what's your next move.

The same can also happen for a down trend when there is panic selling and xagusd price is also driven vertical. This especially happens during recession.

The steeper a trend line angle, the less dependable it becomes. When the most steep is broken its best to exit this trade transaction. The example explained and shown below is for crude oil that has shaped a parabolic setup. Another example is silver that formed on the weekly/monthly chart during the period shortly after the steepest line in the crude oil chart was broken.

As a trader if you come across a parabolic silver trend in an up direction just keep buying & buying some more and you'll more likely to make profits trading this market trend direction, there will be no added analysis requirement just the trendlines. The only thing to remember is to get out once the steepest line is over because the reversal on this xagusd setup is very fast you need to also be very fast. Just make sure you exit at the correct point just like in the above example.