Trend & Momentum Bars
"The trend is your friend"
Last updated
"The trend is your friend"
Last updated
The HTF helps you define short and intermediate term market trends. Unlike the Alpha Trend these trends are defined by moving averages.
When we are in an uptrend the HTF will signal that uptrend by painting the bars WHITE. Conversely when the asset is in a downtrend the HTF will paint the bars GREY. These color defined trends will help to keep you in a trade with a much higher chance of not getting shaken out by volatility and it moves the price sporadically. You will be able to have a clear visual of the actionable trend.
Below you will see some examples of uptrends that the HTF kept you in so you were not shaken out by the shorter term volatility. In the first example you can see how the HTF keep you in your long position during the 2020/2021 bull market up until just before it crashed - then it turned grey to keep you out of losing money or your Bitcoin.
One of the most important signals in trading is momentum changes. These signals can be identified just before trend changes happen in the market. They should be your first clue to pay attention to a possible change in trend direction! In the HTF we signal momentum changes with the color of our bars. When there is a Bullish Momentum shift the bars will turn GREEN. When there is a Bearish Momentum shift the bars will turn RED. Notice in the examples below how the Green bars preceded the bars changing to a white uptrend, and how the Red bars preceded the changes to a grey downtrend. These are the patterns we look for when diagnosing the trend and possible changes in the trend.
Below is an example of the Red Bearish Momentum bars signaling before the 2021 Bitcoin Crash. This would have saved a lot of people from losing all their profits during the 2020 Bull run. Notice how after the bearish momentum signals, the grey bars confirm by signaling the trend has changed. Later on we get two Green Bullish Momentum signals. One yields break even while the next one made a 50% profit starting from the green bar. Imagine catching that long move. Its evident the value of the HTF system and we haven't even gotten into its main value which is squeeze breakouts!
