Athena Momentum Squeeze - Short, Lean, and Mean

This trading strategy, Athena Momentum Squeeze, signals entry based on 'squeeze momentum' points, uses a moving average as a trend filter, and sets exits based on either a stop loss or take profit condition calculated with ATR (Average True Range) or percentage movement.

To trade this strategy manually on TradingView:

• Identify entry conditions: Look for light green or dark green bars indicating bullish momentum, ensuring the preceding bar has a dark blue dot (confirming conditions of a 'squeeze').
• Use a moving average with the specified length from the script (e.g., SMA with 200 periods) as a trend filter for 'long' entries - enter only if the price is above the MA.
• Calculate stop loss and take profit:
  • Stop loss can be set using a fixed percentage or an ATR multiplier. If ATR is used, multiply the ATR at the entry by the designated value (e.g., ATR(14)*2).
  • Take profit can be set similarly, also taking into account risk/reward ratios.
• Exit the trade when certain color bars appear (e.g., dark green for long exits), optionally ensuring that it is only done in profit.

To enhance the Athena Momentum Squeeze trading strategy through manual trading, consider the following steps centered around detailed market analysis, discretionary decision-making, and risk management:

• Market Structure Evaluation: Before relying on the squeeze momentum indicators, evaluate the overall market structure for the Micro Nasdaq Futures. Identify key support and resistance levels on higher timeframes to understand the primary trend and potential reversal zones.
• Volume Analysis: Incorporate volume analysis to confirm entry signals. Look for increasing volume on light green bars, indicating stronger buying pressure, and declining volume on red bars to aid in deciding when the momentum is truly with the trade.
• Economic Event Awareness: Be aware of scheduled economic events that could affect the Nasdaq market. Avoid entering new positions shortly before major announcements that could cause erratic price movements.
• Trader Sentiment Analysis: Utilize sentiment indicators or market internals such as the Advance-Decline Line of NASDAQ stocks to gauge whether broader market sentiment aligns with the momentum signals from the strategy.
• Price Action Confirmation: Employ price action techniques such as candlestick patterns to confirm entry points. For example, a bullish engulfing pattern preceding a light green momentum bar can offer a stronger case for a long position.
• Variable Position Sizing: Apply variable position sizing based on the strength of the signal. If multiple confirmations align, consider increasing the trade size, while reducing it when fewer confirmations are present.
• Dynamic Stop-Tightening: Use a trailing stop loss that adjusts with the price movement to lock in profits and minimize risk. This can be based on recent swing highs or lows, or a multiple of the ATR.
• Filter Trades with ADX: Add Average Directional Index (ADX) as an extra filter to assess the strength of a trend. Enter trades only when the ADX is above a certain threshold, indicating a strong trend.
• Post-Trade Analysis: Keep a detailed log of all trades and review them periodically. Assess what worked, what didn’t, and identify patterns in trade outcomes to refine entry and exit criteria continuously.
• Technological Tools: Although trading manually, make use of price alerts, conditional orders, and mobile applications to stay responsive and execute strategies effectively in a dynamic market.

This trading strategy is tailored for day traders who favor short-term, momentum-based plays and who have the capacity to actively manage trades within a limited timeframe. Specifically, it aligns well with traders who:

• Prefer to operate on a smaller time scale, utilizing 15-minute intervals for trading decisions.
• Seek to capitalize on quick market movements and are comfortable holding positions for approximately one hour on average.
• Have a knack for technical analysis and can adapt to using advanced indicators such as the Lazy Bear Oscillator Squeeze, ADX, moving averages, and Fibonacci levels.
• Are willing to continuously monitor and modify their trades in response to market dynamics.

The style emphasizes high-frequency engagement with the market, adjustment of strategies in real-time, and a disciplined approach to manage risk and book profits methodically.

• Strategy essence: Optimized for short-term momentum trends, focusing on Micro Nasdaq Futures with approximately hour-long trades.
• How it works: Utilizes squeeze momentum indicators based on the Lazy Bear Oscillator, modified with additional filters such as ADX, moving averages, and Fibonacci levels.
• Usage: Suitable for day traders who actively engage the market and can benefit from algorithmic alerts but also possess the technical analysis skills for manual intervention.
• Strategy Improvement: To enhance performance, combine market structure, volume analysis, and price action techniques with the existing strategy indicators.
• Risk Management: Implement dynamic stop loss strategies, trailing stops, and variable position sizing calibrated to the strength of the trade signals.
• Optimization: Continuously refine the strategy by post-trade analysis and adapt to changing market conditions.
• Trader Profile: Designed for traders who can commit to quick decision-making and frequent trade adjustments.