Swing traders rely on support-resistance to define execution and reward targeting. Momentum markets often display no common landscape features at all. This requires entry without a clear violation level that proves that the setup was wrong. In this blind environment, arbitrary stop losses may be the only way to keep the speculator out of intense danger. Momentum trading can be mastered.
Profit depends upon detached and disciplined execution.
Reduce momentum risk through 3-D charting. Identify reward for the time frame of interest. Confirm that the stock shows no important divergences that may signal the end of the move or an impending reversal. Then guide execution and position management through the chart in the next lower dimension. When a strong trend explodes on the daily view, use a 60-min bar to pick out low risk entry and define natural exit points.