Trade confirmation, not speculation. Master the 2-step CMT entry

Market reversals are where true opportunity lies, but they are often mistaken for simple pullbacks. Our Chartered Market Technician (CMT) approach demands a systematic, two-step confirmation process rooted in objective, rules-based methodology. Stop guessing and start confirming with this strategy for E-mini and Micro Futures.

Step 1: The Divergence Signal (Momentum Exhaustion)

The first sign of a high-probability reversal is the divergence between price and a momentum oscillator, such as the Relative Strength Index (RSI).

Rule: In an uptrend, look for the price to make a higher high while the RSI makes a lower high. This is a bearish divergence, indicating that the buying momentum is weakening even as the price pushes to a new peak.

CMT Insight: Divergence is a classic technical analysis signal, and the CMT designation validates that this signal is rooted in time-tested, professional analysis.

Step 2: The Confirmation (Structure Failure)

A divergence alone is anticipation—not confirmation. We wait for a structural failure to confirm the professional entry.

Rule: For a short entry after bearish divergence, the price must close below a key, short-term Exponential Moving Average (EMA), such as the 21-period EMA. This EMA crossover signals that the short-term trend is officially broken.

Entry and Risk Management: Enter your short trade on the close below the EMA. Place your initial stop-loss just above the most recent swing high (the price high that created the divergence). This defined structure ensures your entry is disciplined and your risk is precisely managed—the core of our CMT Assurance.

Book a guaranteed Trader Assessment with our experts to move past inconsistent results and build a scalable system.

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