Let Sarah show you exactly how to use the Newton Indicator — LIVE at 4 PM ET today
Trading is all about timing — getting in early and getting out before momentum fades. That’s exactly what my Newton Indicator is designed to do.
It’s a momentum-based trading tool I built to help identify high-probability setups with precision timing.
Instead of guessing when to enter or exit a trade, Newton provides a clear signal based on market momentum.
How It Works
Newton uses a 5- and 16-day exponential moving average (EMA) crossover as its foundation. But unlike traditional moving average crossovers, Newton doesn’t just turn green when the 5-day crosses above the 16-day.
The Key Is Acceleration
For Newton to signal a buy, the 5-day EMA must be at least 1% above the 16-day EMA and expanding. This confirms that momentum is accelerating — not just drifting higher.
If the expansion isn’t there, the candle turns yellow instead, signaling that the trade setup isn’t fully confirmed yet.
How to Use Newton for Swing Trading
If you’re using Newton for swing trading, here’s the setup:
- Find a stock in a strong sector. If Technology (XLK) is leading, start there.
- Use the Newton long scanner to identify stocks flipping green for the first time.
- Verify that the stock is in a strong uptrend on both the daily and weekly charts.
- Enter on the first green candle and exit on the first yellow candle to lock in profits.
This approach gets you into stocks early — before they make their biggest moves.
How to Use Newton for Day Trading
For day trading, Newton adjusts to use a 5-EMA and 30-EMA to eliminate noise. The same principles apply, but with a 5-minute chart instead of a daily or weekly setup.
If the market is bullish, start with stocks showing relative strength. If the S&P 500 (SPY) is up 1%, you want stocks that are up at least 1.5% or more.
Enter on the first green signal and exit on the first yellow.
For bearish trades, use the Newton short scanner to find weak stocks in lagging sectors. The first red signal is your entry, and the first yellow signal is your exit.
The bottom line is Newton eliminates the guesswork and helps you quantify momentum. Whether you’re swing trading or day trading, it gets you in early on strong moves and out before they fade.
If you’re still manually flipping through charts looking for setups, you’re already behind. Newton does the work for you — you just have to follow the signals.
Graham Lindman
Graham Lindman Trading
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Also check out my website at: https://grahamlindman.com/!
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
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