I wanted to make a new post focusing on momentum day trading setups. So far in 2023 we have witness many beaten down, highly shorted stocks catch some new momentum and some of these moves have been quick and fierce!
In this blog post we will step through an $AI momentum day trading setup from June 13th 2023!
I've mentioned this in the past before, momentum trading and markets is my style of trading. These types of technical setups have been my bread and butter over the years so naturally I'm seeking them out when the conditions are right.
I tweeted about this recently!
Each morning I send out a morning tweet to Art of Trading private community members. Lately we have been focusing on momentum day trading setups. I don't "officially alert" day trading setups because the pace in which some of these setups move is just too quick and because of that it would be irresponsible to make an alert out of them.
Our core strategies and alerts are built around swing trading but I do share potential day trading setups like this one for Art of Trading members to take on themselves.
Since we focus on these setups frequently Art of Trading members have many prior examples of what to look for in these setups to execute on their own and many members do.
Here is the morning tweet from the Art of Trading Private feed on June 13th 2023:
I mentioned in this tweet "A breakout over $39.40 could propel this much higher into a squeeze play! Why was $39.40 an important price point to watch this day? Well it had been a price point of resistance from June 7th and again on June 9th. This price point would also pivot it back above a technical breakout zone, likely sending the stock higher in short order!
90 minutes into the open on June 13th $AI chopped and churned in a constructive manner. It traded above the previous high of the day prior and didn't break the prior days low. Then the momentum returned and the price started to move higher quickly right at 11AM! I made sure to let AoT members know that the price was starting to move!
The first price level of importance was the high of the day at $38.65. Once the stock broke through this level with momentum (as it did around 11AM) the stock was off to the races to make another new high of the day. The second focus point would have been $39.40 talked about earlier. Through that price point and the stock pivots into a technical momentum breakout.
I personally took this trade on myself when the momentum move started to break!
Another important point to mention here is its no secret that algorithms like to act around 11AM and 2PM and some of my strategies are based on this, such as the Avalanche Day Trading technique.
Here is a full technical breakdown of how the trade developed on the chart during the day. These are the things you look for in a momentum day trading setup!!! Make the chart full screen and zoom in on all the little details!
These same sort of techniques can be applied to larger time frames too. 15 minute, 30 minute, 60 minute, and daily time frames for longer term swing trades!
I personally made out well with this trade applying these techniques to my own trade! Taking an entry near the High of Day breakout earlier in the day and holding through the momentum trend!
You only need 1 or 2 off these a month to make a respectable living! Last week we tried these similar setups and went 2 for 3!
Be sure to check out the Art of Trading Blog ( https://www.artoftrading.net/blog ) and all that it has to offer! I've created an extensive catalog of real world trading techniques, strategies and reviews such as this one! The free educational content can add a lot to your trading tool box and make you a more confident trader!