Price: ₹ 449.00
(as of Aug 20,2020 21:35:40 UTC – Details)
Previously, I used the momentum strategy in trading. This strategy has the idea that buy stocks at high price and sell at higher price. Because we believe that momentum have the force that makes the price higher.
For my speculation, I use the condition that I will buy stock that have high momentum. So, if the stock beginning to sideway. It will have high momentum. when the price cannot breakout the resistance. I buy stock at the highest price.
That make me ask the question what’s momentum strategy’s weakness, and how we can see the warning sign that the price has a lower chance.
From the question I found the weakness of momentum is that we cannot observe when the momentum is weakening.
But then I found about relative strength. It helped solve the problem of momentum weaknesses very well. It Help me see the warning sign that previously I can’t see when the price’s momentum has decreased. And that made search the stocks will be better for speculative trading.
And when using it with RS-Pattern, they help me decide to buy stock better. It makes me easier to make money. Because you don’t have to wait for that chance when the share reached its limit, will the share purchase this time be able to sell at a higher price? even during holding. When seeing the warning sign that the price may be decrease. It makes me decide to sell the stock more easily. Resulting in a very small decrease in profits compared to before, sometimes with almost no profit at all.