Dear Trader:
The most powerful and accurate tool I have ever developed for catching market turns often to the very price bar of the turn is momentum divergence.
My best-selling book, The Power Momentum Formula, has been read and implemented by hundreds of traders all over the world. If you have used my method then you are very familiar with its amazing ability to spot market turns very early or even prior to their inception. The Power Momentum Method is a complete process from set up to trigger to follow-through. While my seasonal trading methods have the capability of catching moves that are already in process, divergence is best at picking tops and bottoms. It is, in fact, the best method I’ve ever seen for picking turns in virtually any timeframe.
But momentum is not the only valid tool for timing divergence!
There are several other completely objective tools that you can use either in conjunction with momentum divergence or as standalone methods for spotting market turns. While these are indicators that many traders already know and use, I believe based on my trading and research that they are not being used in the right way. Just as I have been able to harness the power of momentum as a divergence indicator as opposed to the usual way in which momentum is used, I have also been able to correctly apply the other indicators which I will disclose and explain fully in my new webinar.
Fine tuning the Power Momentum Formula
While my Power Momentum Formula has made some utterly outstanding calls, there are several refinements, particularly with regard to stops and follow-up that will also be detailed at my new webinar. As an example consider the case of a stock trading at $11 a share which triggers a buy on momentum but which according to the rules requires a $6 stop loss. A large stop such as this is unacceptable. I have developed a new approach for dealing with such situations effectively. This approach will also be explained at my new webinar.
Consider the Following Chart
The chart below shows one of my new divergence indicators along with some triggers. This entirely new application will help you zero in on divergence setups and triggers which the momentum divergence method can fail to identify. As the chart below shows, the NEW divergence method triggered a BUY but the standard method did not. Does that mean that we abandon the old method? NO - it still works. BUT WE ADD THE NEW METHOD to our arsenal of tools to help catch MORE MOVES!
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