In this article, we'll take a look at strategy that does just that: the Five-Minute Momo Trade.
What's a Momo?
The Five Minute Momo Trade looks for a momentum or "momo" burst on very short-term (five-minute) charts. First, This strategy waits for a reversal trade but only takes advantage of it when momentum supports the reversal move enough to create a larger extension burst. The position is exited in two separate segments; the first half helps us lock in gains and ensures that we never turn a winner into a loser. The second half lets us attempt to catch what could become a very large move with no risk because the stop has already been moved to breakeven.