Some Trading Coach Jo clients have been asking me about how they can best measure momentum. With the current market, I have been using the previous 2 day high/low plus the first 30 minute OR. I use this as a validator just before opening a trend trade. Let me explain:
When a ticker meets all my written entry rules for a trend trade, I then take my last step before entering. I open up a 5 minute, 2 day chart. Part A and Part B both must be met before I will open a trade. The order of Part A or Part B does not matter. They just must both be satisfied. Part A = the stock price is above the high for the previous 2 days. Part B = the stock price is above today’s 30 minute Opening Range (OR).
This type of momentum checker has been very useful to me. It has kept me out of trades and gotten me into the right trades. Hope this tip will be useful to you.