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Momentum Strategy by Stock Pickers

Momentum Theory is a trading strategy that suggests a 90% chance the market will continue in the direction of the previous day's momentum. It provides specific rules for entering long and short positions based on price action and the 9 EMA. This approach can be applied to any chart, index, or time frame to enhance trading accuracy.

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shanurudra177
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16 views12 pages

Momentum Strategy by Stock Pickers

Momentum Theory is a trading strategy that suggests a 90% chance the market will continue in the direction of the previous day's momentum. It provides specific rules for entering long and short positions based on price action and the 9 EMA. This approach can be applied to any chart, index, or time frame to enhance trading accuracy.

Uploaded by

shanurudra177
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Momentum Theory

by Stock Pickers
Hey everyone!
I've been working on this strategy for a long time, and it's both simple and logical.
You won’t find this approach anywhere else! I’ve named it Momentum Theory.

The core idea is straightforward:


“ There’s a 90% chance that the market will continue in the direction of the
previous day’s momentum ”

And the best part? You can apply this theory to ANY chart, ANY index! 📈📊
Let me show you how it works!
You can apply Momentum Theory with the 9 EMA to improve the accuracy.
📌 Rules for a Long Position:
✅ The stock closed green yesterday.
✅ The closing candle should show strength (no upper wick).
✅ Price should be trading above the 9 EMA.
✅ No more than three consecutive green candles.
✅ Must break the previous day’s high.
✅ ENTRY and Stop-loss based on price action.
I personally use it on the daily chart, but you can explore this strategy and find your own edge!
📌 Rules for a Short Position:
✅ The stock closed red yesterday.
✅ The closing candle should show weakness (no lower wick).
✅ Price should be trading below the 9 EMA.
✅ No more than three consecutive red candles.
✅ Must break the previous day’s low.
✅ ENTRY and Stop-loss based on price action.
I personally use it on the daily chart, but you can explore this strategy and find your own edge!
In simple terms, you’ll often see Two green candles together in an uptrend
and Two red candles together in a downtrend, confirming the momentum.

This pattern signals that the market is likely to continue in the same
direction. By combining it with the 9 EMA, you can filter out false moves
and improve accuracy.

This works on any chart, any index, and any time frame! 📈
Follow stock pickers to simplify your trading. ✅
stock_pickers31

stock.pickers

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