I hope all book readers have incorporated Multiple Time Frame Momentum setups as part of their trading plan. I describe in the book how you can use almost any price oscillators for this critical trade filter. I’ve been doing some more short term trading the past few weeks since I am settled for the summer-fall season before I leave for warmer climates this winter.
I continue to be amazed at how well the Dual (and triple)-Time-Frame-Momentum setups alert me to high probability trades and, just as important, keep me out of less optimal trades when I get excited about a pattern or price position for the Dual-Time-Frame-Momentum is not setup.
In DT, once I’ve identified the 60m momentum position, I just set the 15m minute DTosc reversal alert to send me a text message and go about my business until I get the alert that the setup is complete. Then I can take a quick look at the chart to verify the position of set the buy/sell stop for the trade.
Don’t fail to incorporate this power strategy with any market and any time frame. Your results should improve dramatically.
Hello Mr. Miner,
A great method and a great book indeed.
I do have a question though: Since I trade forex and my platform comes with a 4hour chart, isn’t it better to use 4 hour as the larger time frame for the 60m rather than the daily?
Appreciate if you could share your thoughts on that.
Hi, Robert:
My name is Lu Yi, from China, You can call me Jacky.
I have to say thanks for your generous sharing. Analyzing tradings by Dual Time Frame Momentum is a ingenious perspective, which inspire me a lot.
Thanks! I am in Shanghai, where EXPO2010 is going on. Welcome to my city. If you agree, I could be the guide for you.
I’ve been using the multiple time frame momentum strategy to filter my FOREX trade set-up since I have read your book. I’m happy to report that my results have improved dramatically. I use daily chart for my high time frame chart, and, 3-hourly and 30-min charts for my lower time frame charts. As for my momentum indicator, I use slow stochastic oscillator and MACD Histogram.
Thanks for writing the book and sharing your strategies.
Saffee: Thanks for sharing how you use the usal time frame momentum strategies.
Jacky: High Probability Trading Strategies was recently published in Chinese. Do you have the English or Chinese version? I spent a month in China last Jan. and will probably make a trip to Shanghai this summer. I’ll be sure to let you know in advance if I make the trip. I’m glad you have found how powerful a trade filter is the Dual Time Frame Momentum Reversal strategy taught in the book.
“MR”: I can’t give you a definitive answer but it is probably yes since Forex is a 24 hour market and a four hour charts would be 1/6 of the larger time frame, a better proportion than the 60m (1 hour). The larger time frame should be around 4-6 times the smaller. Jaime has been using the daily – 60m for so long we continue to use it. Thanks for bringing this up.
Dear bob,
I dont get how the dual momentum strategy fits in with the pattern strategy.
If you have a valid ABC pattern on the daily chart, that means by definition that the price has been going down for a few weeks. Therefore it is impossible to have bullish weekly momentum. That means we are looking for weekly momentum to be oversold.
I found that given a valid ABC pattern on the daily, you can always make the weekly momentum to be oversold by adjusting the momentum indicators parameter. Therefore the dual time frame strategy seems redundant to the pattern strategy.
Is there any situation where you have an ideal price, pattern and time setup on the daily, but you reject the trade because the weekly hasn’t reached the OS zone yet for your default parameters?
i am about to start trading forex, a beginer still demotrading.
tanx for dis wonderful book i am gettng set to open live account
For the momentum indicators in MTFs, are the paramiters the same for all time periods. i.e. 8,5,3,3 or 34,21, 13,13, across all times frames?
Thanks
Igor: If you have chosen the weekly (or higher time frame) momentum lookback periods correctly as described in the book, they should provide reliable signals of OB or OS to be alert to a price reversal. The key is not to trade against the higher time frame momentum. If you have a potential ABC correction (down) but the higher time frame momentum is bearish and not OS, it may not end up being an ABC correction. If there appears to be an ideal price, pattern and time setup on the daily but the weekly momentum is still bearish and not OS, I might go to the next lower time frame (60M) to execute the trade but would be aware that it is a daily trend trade (direction of daily momentum) with 60m momentum execution.
Doji: Did you read the book?! The momentum chapter describes how to determine the best indicator setting for any market and any time frame. Different time frames, even for the same symbol, may have different settings.
Michael: It has been a few months since you submitted you comment and I have made replies. I hope your live trading is going well.
Esteemed Robert!
I like your book very much. Sir, my problem is I only day trade in cash/individual stocks in India. I follow your dual time frames 30min and 5 min. with stochastic setting 8,3,4. Yet often I end up in loss. What would be guidance for me, Sir?
The dual time momentum setups are not a trading strategy but a filter to identify potential trades. The time, price and pattern position must be considered as well as the trade entry and exit strategies.