How To Identify Strong Momentum Moves

[QED]

Question for the experienced traders in this useThinkScript community:
What are best indicators for identifying power momentum moves and possibly indicating a favorable entry and exit?

I do understand that nothing is risk free and that no single indicator is a magic money maker, but I am hoping that there is something that can assist in identifying possible strong moves early in the decision making process. I have been getting chopped up a lot lately!

Thoughts and opinions are welcome.

 

[cando13579]

I would say research, usethinkscript and i an pretty sure you would find far more valuable trading tools here.just my 2 cents.good luck.

 

[csricksdds]

Question for the experienced traders in this useThinkScript community:
What are best indicators for identifying power momentum moves and possibly indicating a favorable entry and exit?

I do understand that nothing is risk free and that no single indicator is a magic money maker, but I am hoping that there is something that can assist in identifying possible strong moves early in the decision making process. I have been getting chopped up a lot lately!

Thoughts and opinions are welcome.

It has been my experience that stocks go through the same rhythms within their ATR's each day (intraday ups/downs) and my trading days are enhanced when I stick with 3-4 stocks with ATR of 5.0 + using my AGAIG indicators which are simple, straight forward and pleasing to my eye. There is no holy grail to trading which is why a stock's current price is right at the 50 Delta because the market gives itself a 50/50 chance of going up or down.

Happy trading...like anything in life, the more you do it the easier it becomes, that is if there's anything such as easy trading?

 

[QED]

Since I have been getting chopped up a lot lately, I simply was looking for some indicator that experienced traders in this useThinkScript community are having success with that assists in identifying strong moves early in the decision making process. Everything that I have been using has been suboptimal lately (or my use of them has been).

 

[MerryDay]

Since I have been getting chopped up a lot lately, I simply was looking for some indicator that experienced traders in this useThinkScript community are having success with that assists in identifying strong moves early in the decision making process. Everything that I have been using has been suboptimal lately (or my use of them has been).

Trend and support are your catalysts (unless you have some other exterior catalysts)
Trading in chop only occurs if trend and support are not confirmed.
read more:
https://usethinkscript.com/threads/using-oscillators-profitably-in-thinkorswim.11497/
https://usethinkscript.com/threads/using-oscillators-profitably-in-thinkorswim.11497/#post-151218

 

[MillerPF]

Does anyone have an indicator that may be used to identify unusually strong momentum? The kind that blows through resistance and fibo lines and keeps on going? Some people might call this "monster momentum."
Thanks!

 

[useThinkScript]

mod note:
most of these links are VIP member only

Sadly no, that is no single indicator that predicts when unusually strong momentum will happen.
Significant Momentum requires a catalyst.

1. In regular trading, daytrader's big momentum days in any individual instrument are tied to the overall market big moves. Research has found that these occur approximately 83 days out of the year.
Your pre-market analysis will assist in determining if the market is shaping up for a blow out day.
https://usethinkscript.com/threads/price-action-a-week-in-review.20968/#post-153529

2. The stocks that outperform the market have other external catalysts.
https://usethinkscript.com/threads/must-know-market-drivers-catalysts.20243/

3. Volume drives price.
So many newer traders, in hopes of killer trades, will chase volume.
start here to understand how to read volume:
https://usethinkscript.com/search/1953817/?q=volume&t=post&c[title_only]=1&c[users]=merryday,+useThinkScript&o=date&g=1
and then here are volume studies to assist your quest:
https://usethinkscript.com/search/1953817/?q=volume&t=post&c[title_only]=1&c[users]=merryday,+useThinkScript&o=date&g=1

Using volume signals in your strategy is successful when your instrument has significant liquidity and the price moves are driven by large adjustments in institutional trader's positions. But otherwise, that volume only signifies that the initial big move has already happened.
In which case, it is necessary to wait for the pullback and ride the not-so-big retracement.

How to use momentum oscillators:
https://usethinkscript.com/threads/using-oscillators-profitably-in-thinkorswim.11497/
https://usethinkscript.com/threads/using-oscillators-profitably-in-thinkorswim.11497/#post-151218

Top 150 Momentum Indicators sorted by popularity:
https://usethinkscript.com/search/1953782/?q=momentum&t=post&c[title_only]=1&o=replies&g=1

@QED @MillerPF

 

[MerryDay]

It is true that there is no one indicator that can predict big moves before they happen.

However, there are some highly-liquid market-mover stocks that do historically make the bigger moves.
Here is a scan that identifies which stocks tend to be consistent big movers:
https://usethinkscript.com/threads/identify-the-big-movers.20100/

@QED @MillerPF