As a new trader I opened the momentum indicator at 50 periodin my chart? What is 50 ? Is it number of days? Does this indicator show the momentum of buying quantities or just price momentum? How can I use it in my intra day trading effectively? Please suggest…please suggest the use in short term holding of stock also…
Momentum indicator is used to identify the direction or strength of the trend. It compares the most recent price with the previous closing price. It’s traditionally 0-100 but in kite it’s -20 to 20. A move above 10 is strong uptrend and the opposite for -10. 50 is the number of trading sessions in the time frame you choose. If 15 mins time frame then the previous 50 15mins candles will be used in calculation. Also CMO is more used now for momentum. I’d suggest if you’re a newbie don’t get into intraday, try your hand with positional trading first.
Than k you very much sir…I am having doubt about the meaning of positional trading also…How can it be done for short holding of good stocks? Please help…Which indicators to be used for analyzing the positions?
ok. positional trading is when you take a short or long position on an asset and hold the position for days, weeks or even months. Intraday you square off all your positions on the end of the day before market closes. Its more difficult to make money in intraday. Also, what do you mean by ‘good stocks’? Fundamentally good or technically good? There are so many indicators. You must read about them and choose by yourself, only that will help.
I mean a stock which has given a good return over the past year in a progressing sector of economy…by the word “good stock”"… For selection I can depend on studies done by magazines like wealth, capital market etc…This is what I am doing nowadays…I go with high growth though it may have high risk of down toward movement…I wait for the up at those times and stop at about 1 to 2 percent profit…Can it be termed as a positional trading?
Yes if you’re taking the position for a few days. Why only 1-2% profit?
Instead of reading magazines, try doing your own analysis.
In one week I am getting 2percent return is very good…in one month it comes to 8 percent more or less…and in an year 96 percentt if everything goes good and allis right…Then I should earn some extra for the charges also…and taxes …
is it not RSI and CMO provide the similar functionality both of them fluctuate according to the price .
so what would you suggest which is more reliable for intraday and positional trading both
It always doesn’t workout so easily. All your trades aren’t gonna be winners. Anyway, all the best 
Intrday or positional you need to decide according to your risk appetite. Yes both are similar but CMO is also specifically used to measure the strength of the trend. I dont use it but mentioned it because if someone has to use an oscillator CMO is known to be better.