Momentum

The momentum price carries is important. If price is carrying bearish momentum, you should wait until this momentum reverses before entering buys.

HOW CAN WE IDENTIFY MOMENTUM

Identifying momentum is as simple as identifying the structure price has, more specifically the swing points that are forming. Bearish momentum will contain Lower Highs & Lower Lows ( LH & LL ), and bullish momentum will contain Higher Lows & Higher Highs ( HL & HH )

HOW TO SPOT REVERSALS

Using trendlines are the easiest way to spot a reversal in momentum. You can also spot reversals by looking for a change in structure ( HH, HL etc ). Waiting for a reversal before entering into a trade could mean your trade duration would be shorter, but your potential profit will also be decreased.