{"id":1190,"date":"2023-08-28T12:19:35","date_gmt":"2023-08-28T06:49:35","guid":{"rendered":"https:\/\/www.definedgesecurities.com\/trading-strategies\/?p=1190"},"modified":"2025-07-16T21:13:56","modified_gmt":"2025-07-16T15:43:56","slug":"pmox-bullish-bearish-momentum-breakout-strategy","status":"publish","type":"post","link":"https:\/\/www.definedgesecurities.com\/trading-strategies\/pmox-bullish-bearish-momentum-breakout-strategy\/","title":{"rendered":"PMOX Momentum Strategy"},"content":{"rendered":"

PMOX<\/strong> is a unique indicator developed by Definedge, based on Point & Figure (P&F) charts.<\/p>\n

It is constructed using the Xs, Os, and vertical column structures of the P&F chart, and functions as both a momentum indicator<\/strong> and an oscillator<\/strong>. PMOX helps identify strong trends as well as pullback trade opportunities.<\/p>\n

A common issue with many oscillators is that they remain in overbought territory even during strong market trends, making interpretation difficult. PMOX addresses this limitation<\/strong> by combining trend strength analysis with recent price swings.<\/p>\n

It measures the strength of short-, medium-, and long-term trends, as well as the intensity of recent price movements.<\/p>\n

PMOX levels of 75 and 25<\/strong> are considered extreme.<\/p>\n

Green and red dots appear at these extreme levels to signal key momentum conditions:<\/p>\n

A green dot above 75<\/strong> indicates strong bullish momentum. When the price crosses the high of the green dot column, it signals a bullish continuation breakout. A suitable stop-loss can be placed at the double bottom sell pattern or below D Smart indicator.<\/p>\n

A red dot below 25<\/strong> indicates strong bearish momentum. When the price breaks the low of the red dot column, it signals a bearish continuation breakout. A stop-loss can be set at the double top buy pattern or above D Smart indicator.<\/p>\n

\u00a0\"\"<\/span><\/p>\n

\u00a0<\/span>Below two strategies listed<\/span><\/span> in the Popular trading strategies tab of the P&F chart.<\/span><\/p>\n

PMOX Bullish Momentum Breakout<\/span><\/span><\/strong><\/p>\n

With this scanner, you can scan stocks that have generated a PMOX bullish momentum dot breakout.<\/span><\/p>\n

PMOX Bearish Momentum Breakout<\/span><\/span><\/strong><\/p>\n

With this scanner, you can scan stocks that have generated a PMOX bearish momentum dot breakout.<\/span><\/p>\n

There are two options in P&F chart scanners:<\/span><\/span> Running and Fresh. In the running scanner option, you will see a list of candidates that have formed a PMOX bullish momentum breakout and<\/span><\/span> are still running in the same column. If you select the Fresh option, you will only be presented with candidates who meet the condition during the current session.<\/p>\n

This strategy applies to all box values, timeframes and instruments.<\/span><\/p>\n

Momentify Trading Setup<\/strong><\/p>\n

Below is a possible strategy for using PMOX in the Momentify Trading setup. Positional Long Only Strategy.<\/p>\n

Strategy Name:<\/strong> PMOX Momentum Strategy<\/p>\n

Stock Group:<\/strong> Your choice<\/p>\n

Allocation:<\/strong> Your choice<\/p>\n

Number of Stocks:<\/strong> Your choice<\/p>\n

Rank Criteria:<\/strong> Return Percent or Volar<\/p>\n

Position Size:<\/strong> Fixed<\/p>\n

Ranking Period:<\/strong> 20 & 252<\/p>\n

Retracement:<\/strong> Within 50% of 52-week high<\/p>\n

Moving Average Filter:<\/strong> 200-EMA<\/p>\n

TMA Trend:<\/strong> Bullish 20, 50, 100 triple moving averages trend<\/p>\n

Trend Quality:<\/strong> Above 50%<\/p>\n

Relative Strength:<\/strong> Above D Smart<\/p>\n

Entry Condition:<\/strong> PMOX Bullish Momentum Breakout<\/p>\n

Exit Condition:<\/strong> Below D Smart<\/p>\n

Market Trend Filter:<\/strong> Change the exit strategy to Double Bottom Sell or High Pole when Nifty turns bearish, or when X% breadth rises above 75, or X% breadth falls below its moving average..<\/p>\n

Please note:<\/strong> When using Point & Figure charts, the box-value can be defined based on the stock universe:<\/p>\n