Hi Traders! Lets review 3 Trade SetUp For Key Momentum Shifts:
For the past 28 years, I have been using three simple trades setups, that I'll explain in the video, to be selective in my trades and to identify key momentum shifts in the market. I hope these setups will be useful to you as well.
High Frequency Traders and Professional Traders will often run retail trader stops by blowing through key support and resistance levels like round numbers only to reverse shortly afterwards. We must protect ourselves from these tactics and be careful not to chase a move or get stopped out.
Recognizing and patiently waiting for one of these trade set up will help especially if you combined or recognize them with a chart formations like a double tops or head and shoulder pattern.
Trade Setup 1: Cross above a key resistance, recross below = shift of momentum. The same setup can be used with a cross below a key support level.
Trade Setup 2: Cross above a key resistance, recross below and a retest of the resistance with a Lower Higher = shift of momentum. This is my preferred setup.
Trade Setup 3: 2 touches to a key resistance or 2 touches to a key support and entering on the 3rd touch for a 66% probability of successful trade.
I hope these setup are helpful, whether you trade or invest, using key momentum shifts with support and resistance lines.
Hope it helps
Take care
Marc
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