Momentum Divergence Strategy using Swing-High and Swing-Low

Questions:

– Using momentum swing highs/lows comparing to price swing highs/lows (divergence)

– New Divergence indicator, add that to the FT Method

– Where can you find the trading worksheet

o Daily Worksheet is in the download section

– When do you use the 4/8 rather than the 5/10 trade management for scalpers

o When I see narrower trading ranges

 Low ATR
 Slow speed
 If I SEE the market is not moving well that day (personality)

– Would it be best to avoid wave trades when the dollar isn’t moving

o Yes!

– Why don’t I trade ES and NQ

o ES is too sideways and sluggish (too liquid)

o NQ/YM is too cheap ($5/tick) which is similar to trading with a spread, and its not the most efficient way of trading.

– Average True Range

o Are we rising or are we falling?

– Do I use market internals?

– Does the Pace of Tape over-ride the Momentum indicator?

o Pace of tape indicator measures the speed of the orders coming into the market
o Speed is THE most important factor
o Excessive speed will FORCE momentum to curl for you.

– Mixed buyers and sellers, so how do I get the confidence I need to trade?

o Look for compensating factors

 Long trade, look for additional levels of support
 Look for momentum to confirm on multiple timeframes

o You may NOT want to take the trade

– Broker references:

o sales@schooloftrade.com for broker references

– Which method should I use with 1 contract?

o Fast Track!!! Specializes in small accounts with only 1 contract.

– Once NT 7.0 is released finally I get to retire!

o 100% auto trader coming out with NT 7.0

– I provide you with the data and the charts for NT charts
– How to practice the ‘trap entry’

o Market replay