Mastering "momentum" is to master the opportunity for victory.
Sun Tzu said:
"The swift current of water can wash away stones, that is momentum."
It means: The reason water can wash away large stones is not because the water is hard, but because it has momentum and energy.
This is also the core idea of (The Art of War):
"A good strategist causes others to act, but does not act themselves."
That is: to place the opponent in a situation I set, while I am not led by the opponent.
In trading, this means:
✅ We should wait for the market to enter structures, positions, and favorable "situations" that we are familiar with before taking action, rather than being led by market fluctuations and trading randomly.
Proactively layout, set the stage, and wait; rather than passively react, chasing highs and cutting lows.
1. "Momentum" can be created, it is not innate.
Sun Tzu said, "The momentum of troops is like a crossbow; it is released when pulled tight."
— Setting up momentum is like a fully drawn bow; when the time comes, it will be triggered.
So where does our "momentum" manifest in trading?
The accumulation of trend energy, strong trend K-lines, moving averages in bullish arrangement, structural breakthroughs, and a visibly strong trend.
Be well prepared (e.g., confirming the three-push structure + EMA20 retracement at key levels).
Traces of big capital behavior (main force building positions, accumulating, washing out).
True masters do not rush into the market but wait for the moment when the "momentum" has formed to strike accurately.
2. The stronger the "momentum," the easier the trading.
Sun Tzu emphasizes:
"Form is the tool of war; momentum is the assistance of war."
That is: tactics are tools, while momentum is the core driver.
Corresponding in trading:
K-line formations, structures, positions, signals (engulfing, morning star, three pushes, etc.) and measuring tools are just "form."
But the trend direction, market rhythm, and main force layout are the "momentum".
For example, the same formation twice (like a morning star), but one is in an upward trend (with momentum), and the other is in a consolidation area (without momentum), the success rates are vastly different.
3. Guiding force by momentum: Masters never clash head-on.
"The momentum of a good warrior is like turning a round stone on a thousand-foot mountain; that is momentum."
Like pushing a stone off a mountain top, once it is pushed, it will go down smoothly.
This is the essence of trend trading.
In trading, the easiest way to lose money is to operate against the trend and go all in.
And masters only take trend-following trades, stop loss when wrong, and wait for the trend to come back before taking action.
How to "create momentum"? (Not blindly impulsive, but reviewing daily.)
✅ By doing three things, we can create the "momentum of trading":
Select strong currency pairs/sectors (capital is flowing in).
Waiting for a pullback in a bullish trend: key formations + support resonance (like EMA20 + morning star).
Combine position management to make "localized heavy positions" (strike in advantageous situations).
This is about "creating momentum" in trading.
How to "seize momentum"? (Accelerating profits in advantageous situations.)
Sun Tzu said: "Win by adapting to the enemy, guided by momentum."
In trading, this means:
✅ We should dare to hold positions when the trend is clear.
✅ We should increase positions (add to positions) in line with the trend after making profits.
✅ Lock in profits after T1 and maintain aggressive T2 positions.
✅ Use residual momentum to "catch large segments of the market," rather than exiting early.
4. Move when the momentum comes, stop when it goes.
The chapter on momentum emphasizes:
"Momentum changes with form; there is no constant momentum in warfare."
Market momentum cannot last forever; once the energy fades, exit in time and remember not to be greedy.
✅ Trading strategy suggestions:
If the price deviates too far from EMA20, and the K-line shows a "reversal signal," reduce positions or take profits.
If the volume clearly weakens and the structure is damaged, consider retreating.
Do not increase positions against the trend, and do not act impulsively when the "momentum has ended."
"Where the troops strike, it is like throwing a rock at an egg; it is about the balance of reality and illusion."
— In war, there must be a crushing momentum; the same goes for trading.
(The chapter on momentum) tells us six core concepts:
Do not rely on predicting wins and losses, but on creating advantages.
Set up the structure (form) and wait for momentum to accumulate.
When the trend comes, dare to open positions and strike decisively.
When the trend fades, be able to quickly reduce positions or exit.
Do not frequently make mistakes in situations with no "momentum."
Tactics (form) are just auxiliary; momentum is the core winning factor.
Trading is like warfare; those who are not good at creating momentum find it hard to win consistently.
🎯 True trading masters are not prediction masters.
They are masters of creating momentum, following trends, and seizing opportunities.
Master the wisdom of "The Art of War,"
This is the ability to "make money easily and not be swept away by the market."
