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How To Take Advantage of Price Momentum

Today's guest is Chris Vermeulen, but most people know him as simply, "The Gold And Oil Guy". Chris has been trading for over 10 years, fine tuning his trading strategy year after year and continually improving timing, entry and exit points as the market evolves. Chris's latest strategy allows him to take advantage of intraday price action without even looking at intraday charts! I thought this was an interesting concept and wanted to share it on the Trader's Blog. Be sure to comment with your thoughts and visit Chris at TheGoldandOilGuy.com.

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Most traders just don’t have the time to track the market on an intraday basis. Crazy thing is, I found a way that takes advantage of the intraday price action while never needing to look at a single intraday chart. Now we can swing trade using the daily charts but get the added performance of watching the intraday chart price action. What also makes this strategy exciting is that it works with virtually any time frame, though each time frame and investment vehicle will require its own custom settings in order to track properly.

I call this strategy a Momentum Trend Crossover. It’s based on 2 moving averages that use intraday, day, or intra-bar price action to calculate its value. Also, a Donchian channel to track recent highs/lows for protective stop placement.

Below are three charts showing how it looks and works. [Read more...]

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