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Momentum trading is a very powerful concept in trading because it is one of the very few leading technical analysis indicators.

Most technical analysis indicators, such as moving averages, MACD and stochastics are lagging indicators, only really telling you what has already happened or has just started too occur.

When you monitor momentum correctly it can tell you what is about to happen with a high probability, when you use momentum trading in your strading strategy you will be about to enter trades early and exit trades before they reverse.

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