I get pretty riled up in this video about Momentum indicators and the importance of using a volume-based, rather than price-based, Momentum calculation.
Araz sent a great question about how to trade trend days and I’ll do another video on the subject later. But in a nutshell, my rule-of-thumb is: Don’t take a reversal trade until you’ve seen exhaustion (or climactic) volume.
And I use my volume-based Momentum indicator (Better Momentum) to tell me when we’ve seen exhaustion buying or selling volume. Anyway, you can check out the video above and see me lose my cool about the humble Momentum indicator.
Good luck with your Emini trading.