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Multiple Time Frame Momentum Strategy

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FIGURE 2.12 Smaller Time Frame Momentum Bearish Reversals, Period 4

Probably the primary reasons such a high percentage of traders blow out and quit within months are no trading plan and no consistency. Now let’s look at the fifth weekly momentum trend shown earlier on the weekly chart, the bullish momentum period from the week ending April 8 though the week ending June 17. The daily chart (Figure 2.13) shows three daily momentum bullish reversals during this period. The first daily momentum bullish reversal was not made until about three weeks after the weekly bullish momentum reversal. The daily momentum was overbought through most of this period, which is a typical momentum position in a strong trend. The first smaller time frame daily momentum bullish reversal (point 1) was made just before a price high followed by a corrective decline that lasted several days. It would have been a no-trade or small loss. The second daily momentum bullish reversal was followed by a consistent rally of several points. The third and last daily momentum bullish reversal

Profile for ERIC  Hunt

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

(wiley trading) robert c miner high probability trading strategies entry to exit tactics for the for  

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