Skip to main content
Track Momentum strategy
46 / 51
Search the archiveLibrary
Library

2019issue C017

Pair a two-day high breakout with a volume-weighted exit on the same chart

The archive pairs a two-day high breakout with a volume-weighted moving average so both the entry and the exit are defined on the same chart. Volume in the average is presented as a way to see momentum slowing, and the line is treated as the visual exit cue after a winning daytrade has been held through strength.

  • The procedure pairs a two-day high breakout with a volume-weighted moving average so entry and exit are defined on the same chart.
  • Including volume in the average is presented as a way to see when momentum may be slowing and to refine trade timing.
  • The holding rule is to stay with a winning position long enough to capture most of the move, then close at the first sign of weakness on that visual exit cue.
  • Minor gap continuations are a favored intraday condition, and for volatile breakout daytrades the timely exit is the primary decision.
Entries in this reading2 entries
Current trackMomentum strategy103 readingsBreakout confirmation172 readings

Entry and exit on the same chart

The procedure pairs a two-day high breakout with a volume-weighted moving average so both the entry and the exit are defined on the same chart. The two-day high breakout is an entry condition that fires when price clears the highest high printed over the prior two sessions. The volume-weighted moving average is a moving average that weights each bar by volume so heavier participation pulls the line more than light-volume bars.

Momentum slowing and the holding rule

Including volume in the moving-average calculation is presented as a way to see when momentum may be slowing and to refine trade timing. Momentum slowing is a condition inferred when volume-weighted trend support or slope starts to fail after an impulsive advance.

The holding rule is described as staying with a winning position long enough to capture most of the move, then closing at the first sign of weakness. The volume-weighted moving average is treated as a chart-visible technical cue for the exit, a visual exit cue rather than a fixed profit target.

Illustrated daytrade configuration

The illustrated daytrade configuration uses a two-day, one-minute candlestick chart with a 50-period volume-weighted moving average. Minor gap continuations are identified as a favored intraday condition for applying this breakout-and-average combination. A gap continuation is an intraday setup in which price keeps moving in the direction of a modest opening gap.

For volatile breakout daytrades, the timely exit is framed as the primary decision in the procedure.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
46 of 51 in the Momentum strategy track
202048-55 pp.Next on Momentum strategyBuilding reflex and trendflex cross and extreme entry rulesBoth constructions start from the same two-pole smoother of the midpoint of the current and previous close, and Length is treated as the assumed cycle period.
All readings on this track · 51 readings
  1. 1984Half-cycle differencing for momentum signals
  2. 1987Relative strength evaluation under competing optimization criteria
  3. 1988Weekly MACD as a two-clock momentum confirmation stack
  4. 1989Equal-weight zero-cross from smoothed spreads
  5. 1989Testing relative-strength-index reversal rules against trend continuation
  6. 1989Smoothed three-day futures filter for index option bounces
  7. 1989Cycle-length windows for momentum, Relative Strength Index, and stochastic construction
  8. 1991Filtered rally magnitude as a bull-regime breakout
  9. 1992Constructing true strength from double-smoothed momentum
  10. 1992Constructing a double-smoothed true strength index
  11. 1993When momentum structure and breadth break together
  12. 1993Constructing double-smoothed range and momentum oscillators
  13. 1993Constructing a two-parameter relative momentum index
  14. 1993Building a bounded momentum oscillator with RSI smoothing
  15. 1993Two-speed oscillators with divergence and trendline gates
  16. 1993Constructing a relative momentum index from the relative strength index
  17. 1994Constructing daily advance-decline breadth tools
  18. 1994Building a composite regime score from monetary climate and weekly trend
  19. 1994Averaging Relative Strength Index and the stochastic oscillator into one reversal oscillator
  20. 1995Dividend-yield regression as a hold versus momentum gate
  21. 1996Jump and hold filters for long-term Treasury yield direction
  22. 1997Constructing extendedness from a 10 percent swing filter
  23. 1997A range-expansion oscillator that can refuse its own stretch
  24. 1997RSI trend permission and Fibonacci pullback rules
  25. 1998Nested midpoint construction for a range-normalized oscillator
  26. 1999Evaluating Relative Strength Index momentum with zero-line and threshold rules
  27. 1999Treat RSI and momentum as three mechanical procedures
  28. 2000Thrust strength figure from moving-average swings
  29. 2001Constructing a non-range-bound balance of market power score
  30. 2004Cleaned breadth oscillator and new-high divergence: a swing-market case file
  31. 2004Evaluating advance-issues-momentum on a fixed-symbol-basket
  32. 2004Constructing a trend filter from two adjacent high-low windows
  33. 2006A dollar-versus-commodity extreme as a regime case
  34. 2008Zero-centered stochastic bands and bracket stops
  35. 2012Evaluating engulfing momentum across hold windows
  36. 2012Staged stops as one mechanical entry and exit procedure
  37. 2012Stacking a relative-strength-index forecast, a trend filter, and long-only momentum
  38. 2013Constructing fair-value filters from averages and momentum
  39. 2014Constructing a multi-window slope divergence entry
  40. 2015Bandedge trend filter construction with inverse crossover rules
  41. 2017Opposite rules for index price and volatility momentum
  42. 2018A three-state overlay that colors a trend only after the line clears the bar
  43. 2018Half-cycle relative-strength index with a Fisher map for cyclic reversals
  44. 2018Emotion as a rule input when momentum breaks
  45. 2018Two-bar body expansion as a momentum breakout construction
  46. 2019Pair a two-day high breakout with a volume-weighted exit on the same chart
  47. 2020Building reflex and trendflex cross and extreme entry rules
  48. 2020Construct a dual-series price momentum oscillator overlay
  49. 2020A multi-timeframe stochastic as a panel of weekly voters
  50. 2020Centerline crossovers that compare index momentums
  51. 2020Multi-timeframe stochastic voting as one mechanical rule
By fieldEntry and exit rules206 readingsBy year201975 readings
All 103 readings tagged Momentum strategy
Also on Momentum strategy5 readings
1991Filtered rally magnitude as a bull-regime breakout2018Two-bar body expansion as a momentum breakout construction1984Half-cycle differencing for momentum signals1985Constructing excess and momentum difference-curve oscillators1987Relative strength evaluation under competing optimization criteria