Market Noise vs Real Momentum

1 min read
trading psychologymomentummarket noise

TL;DR: Here’s the EMA10/55/200 + Squeeze Momentum combo we use in ChartPilot to separate noise from real momentum signals.


Why Filter Noise?

In tech and growth, price fakes out constantly.
Without filters, you end up entering late or on dead-cat bounces.


The Idea

  • EMAs 10/55/200 → define the trend and bias.
  • Squeeze Momentum → detects compression (possible breakout) and expansion (follow-through with force).
  • ADX → strength confirmation (avoid weak-trend entries).

Basic Signal

  1. Trend in your favor (price above EMA55/200 for longs).
  2. Squeeze ON (compression) → wait for a break.
  3. Squeeze flips to expansion and EMA10 crosses in favor.
  4. ADX above a threshold (e.g., 18–20) for confirmation.

Quick Trade Management

  • Entry: on the close of the confirmation candle (1h/4h/1d).
  • Stop: below EMA10 or below the compression low.
  • Scale out: at resistance or when Squeeze Momentum weakens.

Common Mistake

Entering on EMA crosses alone.
The squeeze tells you if there’s fuel behind the move or not.


Conclusion

This simple set filters out a lot of traps.
It’s not magic — but it improves timing and consistency.


FAQ

Does it work on 1h and 4h?
Yes. In ChartPilot we evaluate 1h/4h/1d and cross-validate signals.

Is ADX mandatory?
No, but it helps avoid choppy ranges.


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