PMF: Follow-through: Part I
Summary
There can be no trade without a setup, a trigger, and follow-through. Every valid trading approach involves three parts, the setup, the trigger, and follow-through. This chapter shows how to follow through on the PMF (Power momentum formula) method. The chapter looks at a very simple but comprehensive method for adding follow-through to the MOM (Momentum) divergence setups and triggers. The PMF follow-through method provides a specific method for follow-through of a trade once there has been a setup and a trigger, the exact initial profit target after a trigger has occurred, how and when to trail stop losses, and the number of contracts (or shares) to trade. It also includes a general idea of whether the move will be large or small.