Momentum Move
Catching strong trends. Riding momentum.
Momentum Characteristics
| Sign | Meaning |
|---|---|
| Strong trend | HH/HL |
| Volume | High |
| Pullbacks | Shallow |
| Continuation | Strong |
Momentum Trading
Entry
Trend: Strong up
Pullback: Shallow
Entry: On bounce
Stop: Below pullback low
Exit
Exit: Lower low breaks
Or: Target reached
Or: Trail stop
Key Takeaways
- Strong trends — HH/HL intact
- Shallow pullbacks — With trend
- Trail stop — Let profits run
Related
Riding momentum.