Trend
- Do we have a trend?
- Is it upward or downward?
- Is there an overall trend?
- Is there a more recent trend?
When drawing trends, look for the longest trend that you can see.
An upward trend is established after 2 higher highs and 2 higher lows. The trend is “loaded”.
“If I am early in the trend, I want to trade at the bounce” – Trading a bounce with a trend.
DEFINITION of ‘Buy A Bounce’
A strategy that focuses on buying a given security once the price of the asset falls toward an important level of support. Traders who “buy a bounce” attempt to profit from a short-term correction or “bounce” off of the identified support.
When you are scanning for a trend, you will have ONE factor that will influence whether or not you continue with a trend
Look for one factor, then filter on that factor.
Trade the Fade
If a particular trend for a particular instrument is broken at a particular time.
Level / Areas
- What is the individual candle pattern at the point of trade?
- Where are the key areas of Support and Resistance?
- What is happening right now?
Lines of support and resistance are areas. They are “zones” and not absolute.
Price Pattern / Action