July 10, 2013 at 09:00 AM EDT
3 Simple Momentum ETF Trading Strategies
Momentum traders who look for strong price movements to jump in on have embraced ETFs for their ease-of-use, cost efficiency, and sheer diversity of products available. Typically, momentum trading setups will come in the form of trends, but they can also come from a shift in momentum – such as strong buying after a sharp decline. Momentum strategies can be applied intra-day, capitalizing on trends that occur within minutes or hours, or the strategies can be applied to take advantage of longer-term trends. Both price and indicator strategies are used to find momentum (or a lack of it) and can be applied to both bullish and bearish markets [see How To Swing Trade ETFs]. Relative Weakness Momentum Strategy – Bearish Momentum Relative strength refers to how one ETF’s price movements compare to another’s. If two ETFs are dropping in a bear market and you want to go short, short the weakest [...] Click here to read the original article on ETFdb.com. Related Posts: Head-To-Head: Gold vs. Miners Favorite ETF Positions For 5 Super Investors Ultimate Guide To Van Eck Market Vectors TR Gold Miners (GDX) Gold ETFs In 2012: The Good, The Bad, And The Ugly Which Gold Miner ETF Has The Highest Correlation To Gold?
Momentum traders who look for strong price movements to jump in on have embraced ETFs for their ease-of-use, cost efficiency, and sheer diversity of products available. Typically, momentum trading setups will come in the form of trends, but they can also come from a shift in momentum – such as strong buying after a sharp decline. Momentum strategies can be applied intra-day, capitalizing on trends that occur within minutes or hours, or the strategies can be applied to take advantage of longer-term trends. Both price and indicator strategies are used to find momentum (or a lack of it) and can be applied to both bullish and bearish markets [see How To Swing Trade ETFs]. Relative Weakness Momentum Strategy – Bearish Momentum Relative strength refers to how one ETF’s price movements compare to another’s. If two ETFs are dropping in a bear market and you want to go short, short the weakest [...]

Click here to read the original article on ETFdb.com.

Related Posts:

Stock Market XML and JSON Data API provided by FinancialContent Services, Inc.
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
Press Release Service provided by PRConnect.
Stock quotes supplied by Six Financial
Postage Rates Bots go here