In this video, I use S&P 500 futures (ES) as an example to show you using trend channel to judge the price action momentum. At the later part of the video, I also show the use of upward thrust, and the up wave on top of the channel to judge the momentum.
It is important to assess the price action momentum of any trading instruments (i.e. stocks, Forex, futures , bond, bitcoin , etc…). If there is a fading of momentum, this is the first sign of weakness to pay attention to before we start to anticipate a change of character, e.g. a down-wave to at least stopping the uptrend, if not reversing the trend immediately.
Having said that, do not get misled that if we see loss of momentum of the trading instruments, we need to get bearish to short, simply because this is only a red flag for us to anticipate potential weakness ahead. And it will take time to materialize.
S&P 500 futures, loss of momentum
As long as we have a structure with higher high and higher low, the up trend is still intact.