Dual Time Frame Momentum Strategy
Trade in the direction of the larger time frame momentum. Execute the trade following the smaller time frame momentum reversals. It is that simple and logical. It doesn't matter what time frames you use. If you are a position trader looking for trades that last from several weeks to months, you will use weekly and daily momentum trends. If you are a swing trader looking for trades that last a few days, you will use daily and hourly data. Day traders will probably use 60-minute and 15-minute...
Info Flm
There are two types of retracements internal and external. The price retracements with which most traders are familiar are what I call internal retracements. If it is necessary to distinguish between internal and external retracements in this chapter, I will use the label In-Ret for internal retracements. Internal retracements are less than 100 and are primarily used to identify the price target to complete a correction. Even if you are familiar with so-called Fib retracements, don't skip this...
Info Xfi
The trailing one-bar-high or low entry Tr-IBH L is very simple and logical and will usually put you into the trade with a very close stop. Once the conditions are in place for a reversal and following the lower time frame momentum reversal, trail the buy-stop or sell-stop to enter the trade one tick above the high or below the low of the last completed bar. Place the initial protective stop one tick beyond the swing high or low made prior to entry. Let's take a look at an example. Figure 6.1 is...
Info Oij
I wish I could give you the quick, easy, and definitive answer to this question. Unfortunately, there isn't one. Anyone who tells you there is such an answer is full of beans and, I suspect, has a very high-priced trading course or system to sell you. For any given momentum indicator, there will usually be different settings for different markets and usually different settings for different time frames of the same market. Once you find the best settings for the recent data for a given market...
Dual Time Frame Momentum Strategy Trade Filter
The Dual Time Frame Momentum Strategy is a powerful filter to identify a trade setup. It may be used with any type of market and any two time frames. It is not a trade execution FIGURE 2.24 Smaller Time Frame Stochastic Bearish Reversals During Larger Time Frame Bear Trend FIGURE 2.24 Smaller Time Frame Stochastic Bearish Reversals During Larger Time Frame Bear Trend strategy. A later chapter will teach you specific trade execution strategies to use once you have identified the optimal trade...