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Trading “THE TREND”

Trend

 

I have always known I should focus on the “Trend” but as I become a more experienced trader I have learnt that focused on the trend can really help your win rate

Ok so what is the Trend?

I have defined the Trend as follows, “The Trend” is Defined By:

•                Short-Term (1-10 Days): Regression Channel

•                TREND: (10+Days):Weekly 20EMA + Regression Channel

•                Long-Term TREND: Monthly/Weekly 20EMA, (180/90/30 Day Trend)

I am always looking for three of these “Trend Measures” to line up to define a trend, for example if the 30 Day, 20 Day & 10 Day Regression channel are all in the same direction then you have a “Trend” to trade.

 

Over time I have found that if I only trade when there is a ‘defined trend” I have a much higher Trade Win Rate.

 

Once you have defined the Trend you can start to define you trading opportunities, I use the following key steps:

Five Key Steps in defining Trading Opportunities

1. Establish The Trend:  Short, Medium and Long Term

2. Identify the Core Strategy

Up-Trend: Rally-Base-Rally, Rally-Base-Drop

Down-Trend: Drop-Base-Drop, Drop-Base-Rally

3. Identify the key Price Battles and Key Price In-Balance with Extreme Price Moves in Time and Tick Charts.

4. Identify the Opportunities to join The Trend

5. Look for an ENTRY that meets all TRADE PLAN RULES, make The Trade and Let it Run

In addition to these steps I really like certain price patterns along with trend that seem to work well on any time scale

LONG:

Golden Long

SHORT:

Golden short

I call the combination or trend and this set up my “golden trades”

Simple Set-Up Golden Trades

1. Establish The Trend:

2. Identify the Core Strategy

Up-Trend: Rally-Base-Rally

Down-Trend: Drop-Base-Drop

3 Look for Mega Price Moves

4. Identify the key Price Battles and Key Price In-Balance with Extreme Price Moves in Time and Tick Charts.

5. Identify the Opportunities to join The Trend

(Levels with Fibb Retr. over 61.8 Good, 78.6-88.6 Best)

 

Entry MUSTS:

•                Fresh Level, No Basing, Room to Hit Targets

•                Price Action/Pattern, Arrival (First, Fast, Far)