How to identify loss of momentum of a Price #trading #tradingstrategy

How to identify loss of momentum in price? To identify a loss of momentum in price, you should first identify the key support and resistance levels on a chart. When there is a breakout of a key level or the initiation of a fresh trend, the price tends to move rapidly, which is known as momentum. To determine a loss of momentum, observe the formation of candlesticks as the price approaches a key level. Look for how the candlesticks become smaller in size, with shorter lengths and shorter bodies. You may also see a candlestick with a long wick forming on approach to the key level or a bunch of candle sticks with longer wicks forming side by side indicating rejection to the lower price. This indicates that the price is losing its momentum and may experience a pullback or even a reversal in trend from this area of value. By keeping a close eye on the candlestick patterns and chart pattern at these key levels , you can identify potential shifts in momentum and make informed trading decisions. For detailed videos subscribe to the channel and hit the like button.