Hello, Traders around the globe,
Here is a reversal pattern of the Hull Moving Average.
Stage #1: You want to see an acceleration of momentum = the blue crosses have spaces inside them.
This stage is important because if you are doing day trade, you want to be sure that you are in a volatile environment.
You don't want to be where the market is choppy with zero range! .
This stage gives you the "flag" that the stock has a potential day trade opportunity.
The probability of you guessing the exact day that the stock will explode is low, that is why you wait for it to explode and trade the intraday reversal...
Stage #1 EXTRA: Now you know how to detect momentum opportunities, and can go into a lower timeframe and trade the continuation of the acceleration of momentum move... but this is for another post.
Stage #2: You want to see the Hull ma go above the price action = the OVERSHOOT!
Once you see that the Hull is crossing the price that means that momentum is running low ---> reversal is coming... (stage #1 made sure we are volatile, now we want to be sure we are overextended and momentum dries out!)
When the HULL moves above the highest high of the move, OVERSHOOT PHENOMENA, it means that the price got really overextended.
The HULL MA is trying to decrease lag, so it "anticipates" the direction, it gives chance for the price to correct to the right direction. If a strong move happens, the HULL expects it to continue, so it will rise above the high of the price movement, "hopeful" that the price movement will continue in its same momentum and force. since it doesn't... overshoot happens, and a reversal is likely to follow through.
Stage #3: You want the slope of the Hull ma to change direction, then you look for your personal reversal setup.
Overextended can become even more overextended, so it is better to be a little late, and be right, than trying many times to catch the TOP and be discouraged, which will make you miss the move!
Ideally, you want the HULL to be SYNCED :) If the HULL is SYNCED that means that it gives the best representation of the price action.
It is hard to sync the moving average every time, the market is changing...
It is easier to be able to recognize when it is synced and when it is not ===> That way, you know when you have better odds of it being accurate.
Here is a reversal pattern of the Hull Moving Average.
Stage #1: You want to see an acceleration of momentum = the blue crosses have spaces inside them.
This stage is important because if you are doing day trade, you want to be sure that you are in a volatile environment.
You don't want to be where the market is choppy with zero range! .
This stage gives you the "flag" that the stock has a potential day trade opportunity.
The probability of you guessing the exact day that the stock will explode is low, that is why you wait for it to explode and trade the intraday reversal...
Stage #1 EXTRA: Now you know how to detect momentum opportunities, and can go into a lower timeframe and trade the continuation of the acceleration of momentum move... but this is for another post.
Stage #2: You want to see the Hull ma go above the price action = the OVERSHOOT!
Once you see that the Hull is crossing the price that means that momentum is running low ---> reversal is coming... (stage #1 made sure we are volatile, now we want to be sure we are overextended and momentum dries out!)
When the HULL moves above the highest high of the move, OVERSHOOT PHENOMENA, it means that the price got really overextended.
The HULL MA is trying to decrease lag, so it "anticipates" the direction, it gives chance for the price to correct to the right direction. If a strong move happens, the HULL expects it to continue, so it will rise above the high of the price movement, "hopeful" that the price movement will continue in its same momentum and force. since it doesn't... overshoot happens, and a reversal is likely to follow through.
Stage #3: You want the slope of the Hull ma to change direction, then you look for your personal reversal setup.
Overextended can become even more overextended, so it is better to be a little late, and be right, than trying many times to catch the TOP and be discouraged, which will make you miss the move!
Ideally, you want the HULL to be SYNCED :) If the HULL is SYNCED that means that it gives the best representation of the price action.
It is hard to sync the moving average every time, the market is changing...
It is easier to be able to recognize when it is synced and when it is not ===> That way, you know when you have better odds of it being accurate.
🏆 There is only #1 way to trading
🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
🧪 Feel confident with science and logic
💰 Trade your way to success and freedom
