Hello, For the first time in my life, it seems I have a valid momentum/trend strategy( have always been a countertrend liquidity provider otherwise...), are there some mandatory threads to read on this subject? I am interested in stocks trading for the most part, not futures. I used the search button but if you type "momentum" or "trend", good luck trying to find something relevant...LOL
I used to trade that way for swinging stocks wayyyyy back. Daily chart 9sma 21ema i used to use. Went day trader fx mainly and taken me 10years to get out of counter trend Ferrari payer for bankers, congrats thats most of the battle.
What I find that works is using different rules as to what is considered to be trend, many would say trend has changed and mind might not. Also, traders don't study swings and waves and distances of breaking pivots and volume to get pretty good guess for reversals. But I agree, most can't do counter- trend well at all.
Except in long term stocks and options, trend has been very limited for me in Commodities, except for sell side as many love to only buy trends.
I agree ... I trade some reversals, intraday (from 1-2-3 formations on constant-volume-bar futures charts) and I have a high win-rate with them, but they're small trades as well as being a small minority of my overall set-ups.
So your saying its sometimes good to go against the Momentum? Isn't That like paddling your surfboard against the waves? Maybe Your definition of trend is different than mine?