Fatty Momentum Strategy

The Fatty Momentum is a day trading strategy that uses momemtum combined with overall supply / demand with some additional confirmations using signals to identify trade setups.

Indicators to load

1. MWaveChart - Set to show Total Volume and Delta Volume. Use a 2 or 3 tick reversal wave size. Pick an algorithm to generate signals
2. MBoxChart - No settings required.
3. MPace - Pace basis is set to Total Volume.
4. MBoxHistogram - Set to Delta Volume and invert set to False.

Timeframes to Trade

This strategy works well on time charts. Can be 1 minute, 5 minute, 30 seconds. You can also combine with looking at a second timeframe or other chart for even stronger confirmation.

How it works:

1. Confirm supply / demand. You can see this with the tall / fat boxes in MBoxHistogram
2. Confirm market momentum using MPace to see that we have gained acceleration going in a certain direction.
3. Load one of the signals (3 Stooges, Pullback, Springs/ UpThrusts) and confirm signal agrees with the above 2 conditions. 
4. This is a bonus point and not always necessary. If you can also see no demand / no supply in the opposite direction.

 

Example 1: E-Mini Nasdaq - 1 Minute Chart

 

Example 2: Crude Oil - 1 Minute Chart

 

Example 3: E-mini Dow - 1 Minute Chart

 

Example 4: FOREX - EURUSD M1

 

Example 5: FOREX - EURJPY M1