The Momentum- Trend Strategy

The Momentum and Trend Strategy helps traders to get into trend-momentum moves. The strategy make sure that you only take trades in the trend direction.

Strategy Idea

This Strategy is all about identifying Bullish and Bearish Trend Structures and catching momentum moves within that structure!

Important to know and understand! When the current trend structure breaks a signal will pop up on the chart. It’s not meant to be followed blindly, what it tells us is that the future price structure may change, hence we want to start to look for trades in that direction. If you don’t understand this, you should not use this strategy. 

 

Momentum - Trend Strategy

What is market structure?

Market structure

Market structure is the structure that is formed based on how the current price moves. The historical market structure can help us predict how the future structure may look like.  A trader that is good at identifying the market structure will be able to make a good prediction about the future.

This indicator identifies Bullish and Bearish market structure and will notify you when the structure changes, which may lead to a long-term trend shift.

 

Please keep it simple. See the signals as that the market structure may change and start to look for trades in that direction!

Bullish and Bearish Structure

Market structure is the structure that is formed based on how the current price moves. The historical market structure can help us predict how the future structure may look like.  A trader that is good at identifying the market structure will be able to make a good prediction about the future.

This indicator identifies Bullish and Bearish market structure and will notify you when the structure changes, which may lead to a long-term trend shift.

 

Please keep it simple. See the signals as that the market structure may change and start to look for trades in that direction!

 

Momentum Breakout

The Momentum – Breakout signals give insights about when a momentum breakout occurs within a trend!

These signals can trigger a continuation of the current trend!

 

Breakouts in general produce many false signals and no matter which breakout indicator you’re using, you gonna experience false breakouts. That is why should you have a clear breakout strategy using these signals. When you can identify proper breakouts you gonna be able to catch moves you never thought was possible!

Tip: In a ranging market these signals can act as taking profit areas and to catch reversals! 

Momentum Breakout

Structure Signals

Structure signals

The Background color is generated from the Trend Average feature. 

 

  • Bullish structure occurs if the Trend average (momentum) turns green at the same time as the Range & Trend line. Hence we want to start looking for long entries. 

 

  • Bearish structure occurs if the Trend average (momentum) turns green at the same time as the Range & Trend line. Hence we want to start looking for short entries. 
Structure signals

Momentum Signals

These signals aim to catch momentum breakouts within an established trend.

 

  • Bullish momentum breakout occurs if the Range & Trend is green indicating a positive trend and if the Trend Average background color turns green we get a momentum breakout signal. The Trend average background color is indicating the direction of the current momentum.

 

  • Bearish momentum breakout occurs if the Range & Trend is red indicating a negative trend and if the Trend Average background color turns red we get a momentum breakout signal. The Trend average background color is indicating the direction of the current momentum.
Momentum Breakout Trend Setup

Momentum Signals

These signals aim to catch momentum breakouts within an established trend.

 

  • Bullish momentum breakout occurs if the Range & Trend is green indicating a positive trend and if the Trend Average background color turns green we get a momentum breakout signal. The Trend average background color is indicating the direction of the current momentum.

 

  • Bearish momentum breakout occurs if the Range & Trend is red indicating a negative trend and if the Trend Average background color turns red we get a momentum breakout signal. The Trend average background color is indicating the direction of the current momentum.

Example #1 – Structure Trades

As explained before, these structure signals are not meant to be followed blindly, they simply tell us that the market may enter a new state. We use that insight to prepare ourselves to act accordingly and start to look for confluence and confirmation that the structure is changing. 

Bullish and Bearish Bullish Structure trades

Example #2 – Momentum Breakout

With a solid breakout strategy with clear rules and risk management, these momentum breakout signals can be used very profitable. Breakout trading, in general, is not for everyone, it requires patience and the ability to understand and read the market structure correctly. 

 

You can enable the Trend Dots in the settings to filter out some false breakouts! Just a tip!

Momentum breakout trades

Example #2 – Momentum Breakout

With a solid breakout strategy with clear rules and risk management, these momentum breakout signals can be used very profitable. Breakout trading, in general, is not for everyone, it requires patience and the ability to understand and read the market structure correctly. 

 

You can enable the Trend Dots in the settings to filter out some false breakouts! Just a tip!

The holy grail

Enhance your trading result!

No matter which indicator/strategy you’re using, remember: It’s all about confirming and finding confluence around key levels/zones.