Momentum trading, How not to buy at the top of the move...


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Is there an indicator or any strategy for thinkorswim that will help me not buy at the top of the move for momentum trading? Lately, I have been buying at the exact top of the move right before the reversal.

@Koken361 🤔 let's start with... there is no way to predict the future.
Do you have a plan before you start trading?
What indicators are you using?
What kind of trader are you? ... Scalper, day/swing?
Based on my experience, TOS is not made for scalping (I let others to share their opinions).
Do not add more than 3-5 indicators to your charts.
Search for the tutorials posted by incredible @MerryDay
Hope it helps.

It may help you to focus on a single instrument and learn it well. If you can find something that is clearly trending upward on daily, weekly, and monthly charts, that will help. That way you can look only for long entries on a lower time frame, which is the path of least resistance for upward trending instruments.

By focusing on one instrument while you learn the ropes, you'll discover if or how it reacts to news releases. What times of day or days of the week does it tend to move?

The better you know your instrument, the better you can interpret your indicators. In my opinion, it's dangerous to rely on indicators for entry decisions. Indicators should confirm a decision you've made to buy...or stay out of the market...not tell you which action to take.

Also, by watching one instrument, you begin to learn about price action. You'll be able to spot easily when support or resistance are being tested, lower/higher highs forming, etc.

Trading is hard to learn. One of my earliest mistakes was trying to trade everything. Now I typically trade only 3 instruments. Narrowing my focus helped me learn which session (Euro or US) to trade and which hours of the day are most likely to give me the best setups.

Scanning is great. Indicators are great. But, in my opinion, they are no substitute for in-the-trenches experience watching a security move day in and day out.

Best wishes and happy trading!

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