Uptrend and Fresh Bullish Momentum Inflection

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Uptrend and Fresh Bullish Momentum Inflection

Watch a tutorial video: Explanation of a trade setup that we call Uptrend and Fresh Bullish Momentum.

TL;DR:

    • The Strategy: It combines trend following (trading with the overall direction) with momentum inflection (timing the entry when a price dip starts to reverse upward).

       

  • Key Indicators:

    • MACD Histogram: The primary signal. When the bars stop declining and start rising (even if still below zero), it indicates a “bullish momentum inflection.”

    • Trend Ratings: Uses altFINS’ proprietary ratings to ensure the asset is in a confirmed uptrend across short, medium, and long-term timeframes.

    • RSI & Volume: Often used as secondary confirmation to ensure there is enough buyer conviction and that the asset isn’t dangerously overbought.

  • The Goal: To “buy the dip” in a healthy uptrend. By waiting for a momentum shift (MACD rising), traders avoid “catching a falling knife” and instead enter when buyers have officially begun absorbing supply.

  • Execution: altFINS provides a pre-set filter in their Crypto Screener called “Uptrend and Fresh Momentum” to help traders find these setups instantly across thousands of coins.


This is a trend trading strategy that uses MACD Histogram indicator to time your entry and exit.
Coins in this trading strategy are in an Uptrend and also early in their upswing (fresh positive momentum).

 

You can find an already predefined market scan right on our Pre-Set Filters on the Crypto Screneer:

 

buying the dip in crypto trading

 

or in Market Highlights dashboard:

 

 

1. First, we identify coins in an uptrend. (see table above: MT – Medium Trend – Up or Strong Up). This is a cardinal rule for trading – trade with the trend. Trend is your friend. Identifying the trend is half the battle. It’s a big contributor to successful and profitable trading.
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2. ​Second, identify those that have a  fresh bullish momentum inflection. (see table above: MACD Hist is Up). That’s because prices move in up and down swings. Even in an Uptrend, you will find that prices don’t move upwards in a straight line. Instead, they naturally swing up and down.

 

To identify such bullish momentum upswing early, we use the MACD Histogram indicator. It’s a great way to find such momentum inflection early on. To find out what is MACD, please check out our knowledge base for a video tutorial here.

When MACD Histogram bars stop declining and begin to rise again, that indicates a positive or bullish change in price momentum.

That’s a potentially attractive entry point for trend traders. Try this powerful trading set up now!

 

Pro TIP: you can create an Alert to get notifications of coins that fil this filter in the future.  Here’s a tutorial. Alert notifications are delivered to the web platform, email and/or mobile app notifications.  Download altFINS mobile app on either iOS or Android.