[walterw]

Hello everyone ¡¡ we know that market climate could be classified into two great catergories: momentum (strength, trending) and non-momentum (weak, non trending) conditions... thus giving us two clear contexts in order to trade diferent type of strategies...

For example if you have momentum conditions you may want to trade trend trades and trail your position as long as possible... now if you have non-momentum conditions you may want to scalp the cycles back and forth...

So its a trader`s MUST to understand market climate... his strategy may work on certain conditions, or may not on other conditions... so if he understands the conditions his strategy has more chance to succeed...

There are many ways to understand market climate.... one of the ways I always look for that is on a 110T (russell) chart with a keltner 50 exp 3.5 atr... if bars are inside keltner, market is on non-momentum conditions, if market gets outside of keltner we have momentum conditions...

Now I want to show a very nice new way I find to measure climate... In this case I am going to use a 200V (russell) chart and on the price pane will have a 20 simple ma and a 50 simple ma with a keltner 50 simple 1 atr ...

You will notice that when the 20sma its "outside" the keltner and doesnt come back inside we got momentum, when "inside" we have non-momentum....

Simple as that... from there on you can see diferent strategies you can work on.... let me attach some examples.... cheers Walter.