Charting  Momentum

Step 1 - Find the highest price and look at the momentum crossover

Step 2 - Find another momentum high crossover and compare to the price

• Notice how momentum is lower than the first momentum high and price is significantly lower

• This creates our two points to a line

• You could select the previous momentum crossover high, slightly to the left of our second circle, but notice how both still do not come close to our original price high

Step 3 - Find two low momentum points to compare price

• You will not know the first low is the first pivot until we are able to break out of the downtrend

• When we need to find our second momentum low above our downtrend to be valid

• Once we have established a second point (momentum low) we can create our line/trend

Step 4 - Exit on break below trendline