Momentum Breakout Trade Alerts
When the Momentum System detects a potential trade setup forming in the market it will issue a TRADE PRICE BARRIER alert Long or Short. (See Below) This price line represents the outer barrier of the “Dynamic-Floating-Range” where the market will have a high probability of busting out and making a move on strong momentum in that direction.
It is recommended that you place a horizontal line on your chart at this price. This acts as your Visual Reference Point for the Trade Setup.
Standard Trade Entry Triggers
Once we receive a Trade Signal Alert with a Trade Price Barrier at a specific price, we need to decide at what point to enter the trade. The standard way to time the entry of your trade is to wait for a 1 or 2 tick “trigger move” past a trade price barrier – or “line in the sand”. Then the trader can enter the trade using a market or limit order. Some traders use a Buy-Stop-Limit Order either 1-2 ticks above the price barrier in the case of a long and 1-2 ticks below in the case of a short.
The Dilemma Of False Breakouts
There will be times that even the best trade setups end up as false breakouts where the move fizzles and runs to hit your full stop-out. Many times these failed breakout attempts or false price moves happen quickly and the only good way to deal with them is through avoidance.
Using The 12 Hull MA as an Trade Entry Trigger
This is the entry strategy we recommend you use
After extensive research on this subject I have discovered that the 12-Hull Moving Average used on a 30-Second Chart makes an excellent trade entry confirmation tool. The first hint that a trade is about to get under way is a 1 or 2 tick trigger move past our trade price barrier. As a secondary method of confirmation to enter the trade, we wait for the 12 hull to pass up above the trade price barrier. When you see the 12-hull MA ABOVE the Trade Price Barrier, AND price is ABOVE the 12 Hull you can enter the trade. The goal is to get into the trade as close as possible to the Trade Price Barrier. (within 3 ticks is acceptable)
No Entry Confirmation Using The 12 Hull MA
Notice below how after receiving the Trade Signal Alert the image shows a 2 tick trigger move past the Trade Price Barrier BUT there is no 12-Hull MA confirmation to enter the trade.
The 12 Hull Can Keep You Out Of Bad Trades
Here is a real live trade example of how the 12-Hull kept you out of a trade entry that fizzled.
Watch this detailed video on how to use the 12-Hull Entry Trigger
Here is the important take-away You want to use the 12-Hull trigger entry strategy and get this strategy down-pat. On a day to day basis as you are trading with the Alerts, the 12-Hull will determine whether a trade is filled or not.
At certain times, and in extremely fast market conditions, we may revert to the “1-2 tick past the Trade Barrier” entry instead of the 12-Hull. This is very rare and you will be notified in the Alert Software that day. Assume that all trades are using the 12-Hull trigger entry unless we specify otherwise in the Alert notifications.
(Under normal market conditions the 12-Hull entry is the one to use. But in rare, extremely fast market conditions the price will be moving too fast and may cause us to miss good entries.)
Entering At The Bid Or Ask?
Understanding the Bid and Ask prices is crucial to order entry. Here is a simple way to keep in your head. If you are trying to enter the market LONG, the BID is the current price you see on your charts and on your trading DOM. If you want to get into a trade RIGHT AWAY… you BUY the ASK. (This places a limit order 1 tick above the BID which typically fills you immediately with the supply above). If you want to SHORT the market and get in right away, you SELL the BID.
Because momentum trades can take off very quickly and never look back, if you attempt to save a tick on your entry you can miss a trade completely.