🚀 Momentum Trading — Buy High, Sell Higher

Momentum traders go against the "buy low, sell high" instinct. They buy at highs and sell at higher highs. Jegadeesh & Titman (1993) research proved 12-1 month momentum works.

Momentum Logic

Rising stocks tend to continue rising for 3-12 months. Driven by: institutional buying, FOMO, technical buying, fundamental improvements.

Buy Setup

1) Price > MA200 (uptrend). 2) RSI > 60 (strong momentum). 3) Breakout 52-week high + volume > 1.5x avg. 4) ADX > 25 (strong trend).

Stop Loss

Tight stop: 5-8% from entry. Or breakdown of MA20/50. Trailing stop along MA20 as price rises.

Sell Signals

MACD bearish cross. RSI divergence. Volume up but price not (distribution). MA20 crosses below MA50.

Position Sizing

Pyramid: enter 1/3 initially, add 1/3 at +5%, add 1/3 at +10%. Total position size max 5-10% portfolio.

🚀 Test this on Vnstock

🔗 Related Strategies

🌊 Swing Trading — 3-21 Day Holding Strategy 📈 Trend Following — Turtle Trader System 🚀 Growth Investing — Find 10-Baggers

← All Strategies · 🇻🇳 Vietnamese