4

Chapter 4

Check Momentum

See whether momentum is growing or fading, then choose a direction to plan.

Understand the ride

Suppose you like RH and want to build a long trade. First, you confirmed that its monthly structure is bullish. The next question is: what is momentum doing inside that structure?

Structure is the road. Momentum is the ride. It tells you whether the car is speeding up or slowing down right now.

1
Step 1

Read momentum in the Quote widget

Open RH in the Quote widget. Select Structure, then choose the same time frame you used for the larger structure. For this example, choose Monthly.

Eden shows bullish monthly structure with bullish weakening momentum. The larger structure is still bullish, but its current upward energy is fading.

RH Quote widget showing bullish monthly structure and bullish weakening momentum
Always read the structure and momentum together on the same time frame.
2
Step 2

Understand the four momentum states

Bullish strengthening

Upward momentum is active and growing. This gives a long plan the clearest momentum confirmation.

Bullish weakening

Momentum is still bullish, but it is losing energy. A long plan may still fit, but the entry needs more patience.

Bearish strengthening

Downward momentum is active and growing. A trader planning a long may choose to wait.

Bearish weakening

Momentum is still bearish, but the selling pressure is fading. This can be an early clue, but it is not bullish confirmation.

3
Step 3

Choose how early you want to be

Earlier approach

Watch bearish momentum weaken

This may show that selling pressure is slowing. The trade has less confirmation because momentum remains bearish.

More confirmed approach

Wait for bullish momentum

Bullish structure and bullish momentum point in the same direction. Bullish strengthening provides clearer confirmation than bullish weakening.

Neither reading promises that price will rise. The goal is to know whether you are entering early or waiting for more evidence.

4
Step 4

Write the RH momentum note

RH has bullish monthly structure, but monthly momentum is bullish weakening. The long idea still matches the larger structure, but I will wait for price and momentum to give me a clearer entry.

You’ve completed Chapter 4

You’ve finished Check Momentum. Keep going while the ideas are fresh.

Next up

5: Understand Key Levels

Learn what the green and red bars mean.

Start Chapter 5
Swing Trading course

Course curriculum

  1. 01
    Chapter 1Introduction
  2. 02
    Chapter 2Set Up Eden
  3. 03
    Chapter 3Read Market Structure
  4. 04
    Chapter 4Check Momentum
    ✓
  5. 05
    Chapter 5Understand Key Levels
  6. 06
    Chapter 6How to Find Entries
  7. 07
    Chapter 7Choose a Price Target
  8. 08
    Chapter 8Define Risk
  9. 09
    Chapter 9Build the Final Trade Plan