Is it possible to use the Momentum indicator with the 100 moving average to enter into successful trades???

$BTC

$ETH

$XRP

Using the Momentum indicator with the Exponential Moving Averages (EMA) can be an effective strategy to understand market direction and momentum. On a time frame such as 1H, they can be combined as follows:

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1. Strategy Settings:

Momentum indicator:

Standard setting (Momentum 14) or as per your preference.

Center line (100) to mark positive and negative momentum areas.

Exponential Moving Averages (EMA):

EMA 100: Reflects the general market trend (long-term trend).

EMA 50 can be added to analyze medium term trend crossover areas.

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How to use:

First: Determine the primary trend using EMA 100

If the price is above EMA 100:

The trend is up.

Priority is to look for buying opportunities.

If the price is below EMA 100:

The trend is down.

Priority is given to finding sales opportunities.

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Second: Reading the Momentum

Positive momentum:

If the Momentum indicator is above the center line (100).

Supports buy signals in an uptrend.

Negative momentum:

If the momentum is less than 100.

Supports sell signals in a downtrend.

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Third: Combining the two indicators:

1. Buy signal:

The price is above the EMA 100.

Momentum indicator breaks above 100 line (bullish momentum confirmation).

Waiting for a correction towards EMA 100 for further confirmation.

2. Sell signal:

Price is below EMA 100.

Momentum indicator breaks below 100 line (bearish momentum).

Wait for a correction towards EMA 100 before entering.

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Risk management:

Use Stop Loss:

Below the 100 EMA line or the nearest price bottom.

Set Take Profit based on support and resistance levels or a fixed ratio such as 1:2 (reward:risk).

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Examples:

1. If the market is in an uptrend and the price is close to the EMA 100 with the Momentum indicator above 100, this reinforces the buy entry.

2. If the EMA 100 breaks downwards with a negative momentum, this may indicate the beginning of a downtrend.

The practical example now is very, very important:::

Open 4 hour frame on BTC

When you look at the Momentum indicator, you will find a divergence in the price, a peak higher than one peak, and in the Momentum indicator, a peak lower than one peak. The presence of a divergence is caution, guys, and we are approaching a strong support point at a price of 100,000.... Good luck.