I just came across this chart this week and the reason why I hadn’t noticed it until today is because it doesn’t fit into my volume requirements. However, this is a perfect example of what a strong momentum trend should look like when the overall markets are behaving in a bullish manner. You have to have the overall markets behaving correctly for momentum trend trading to work, because most breakouts fail and to put the odds on your side you want the indexes to be in bull mode.
My favorite momentum indicators are: RSI + ADX + Massive volume on breakouts + busting out of key resistance levels.
JKS is approaching climactic levels and it wouldn’t surprise me to see this have a key reversal day where it’s one day volume is over 1.5 million.
Here is an example of a momentum trend that is happening right now. One caveat about this chart is that it’s been strong for awhile and could be in the late stages of this run, and when you consider the markets are so volatile, it’s not an optimal trade.
