There are a number of ways to judge the price action momentum. In the previous post, I show you using trend channel as an alternative to up wave or upward thrust to gauge the buying or selling momentum.
In this video, I also adopt the same example SP 500 futures (ES) to show you using the popular pattern — rising wedge and RSI indicator to achieve the same objective.
Yet, what I would like to emphasize is to understand the rationale behind the pattern and the indicator, which we can always go back to the first principle to find out, i.e. why a rising wedge is bearish in nature or what bearish divergence in RSI actually means?
Once you understand the rationale or the first principle about the price action momentum, you can start trading without memorizing every single pattern or indicator if you prefer.
Rising wedge and RSI indicator show losing momentum