Chapter 12: Momentum Trading
by PRASHANT SHAH -
“Success is where preparation and opportunity meet.” – Bobby Unser We have had an extensive discussion on momentum investing in detail, and it is important to understand how it differs from momentum trading. While both approaches are based on the principle of riding momentum, the expectations, processes, and activity levels in these two approaches are ... Read more
Chapter 13: Trading Strategy Engine
by PRASHANT SHAH -
“What makes a decision great is not that it has a great outcome. A great decision is the result of a good process.” — Annie Duke The momentum investing strategy engine that we discussed in the previous section can also be effective for developing a momentum trading plan. Stocks that meet momentum investing criteria often ... Read more
Chapter 14: Effective Setups
by PRASHANT SHAH -
“I believe in analysis and not forecasting. The key to success in investing is not in predicting the future, but in systematically following the present.” – Nicolas Darvas A technical trading strategy typically forms the foundation of any momentum trading plan. These strategies establish the rules for entry and exit, providing a structured approach to ... Read more
Chapter 15: P&F Momentum Setup
by PRASHANT SHAH -
“The quieter you become, the more you can hear.” – Ram Dass In Chapter 7, we discussed Point and Figure (P&F) and Renko charts, focusing only on aspects relevant to momentum investing strategies. In this chapter, we will explore highly effective setups specifically designed for momentum trading. Having practiced noiseless charts since 2008 and studied ... Read more
Chapter 16: Renko Momentum Setups
by PRASHANT SHAH -
“Time is relative; its only worth depends upon what we do as it is passing.” – Albert Einstein We explored about the Renko charts in detail in Chapter 7. In this chapter, we will discuss a few momentum setups based on Renko charts. Renko charts are similar to P&F charts in some ways. Both are ... Read more
Chapter 17: Bearish Strategies
by PRASHANT SHAH -
“The four most dangerous words in investing are: ‘This time it’s different.'” — Sir John Templeton We have discussed bullish positional and swing trading momentum strategies so far, which are applicable across all instruments. The bearish strategies are discussed separately because not everyone feels comfortable with short selling. Short selling is the process of selling ... Read more
