A Trading Plan Is Important For Success - Here Is MineIn this video we take a look at a trend continuation trading strategy. I explain my approach to trading how I identify a trend and what I look for for high probability trade opportunities. As always the information is for educational purposes only and not to be construed as financial advice.
Trendtrader
Trend Trading Strategy - Trend Continuation Master the Market Rhythm: Trend Continuation Strategy with Fibonacci Precision
Ready to ride the market waves with confidence? This video unlocks the secrets of a powerful trend continuation strategy, designed to capture momentum and maximize gains.
Here's what you'll discover:
* Identifying the Trend: Learn to spot bullish (higher highs, higher lows) and bearish (lower highs, lower lows) trends like a seasoned pro.
* Support & Resistance: Leverage key price levels where the market reverses, creating exploitable entry points.
* Timeframe Harmony: Start from the bigger picture and zoom in, pinpointing the ideal entry zone on lower timeframes.
* Fibonacci: Harness the power of the 61.8% retracement to identify high-probability trade zones within the trend's ebb and flow.
3 Most Important Rules of Profitable StrategyIn this video I have explained 3 most important rules of a profitable step by step
Please give thumbs up and let me know if you have any quetions
📈 9 Ways To Identify an Uptrend📍 What Is an Uptrend?
An uptrend describes the price movement of a financial asset when the overall direction is upward. In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact.
Some market participants only choose to trade during uptrends. These "long" trend traders utilize various strategies to take advantage of the tendency for the price to make higher highs and higher lows.
💥Important thinks to note
🔹Uptrends are characterized by higher peaks and troughs over time and imply bullish sentiment among investors.
🔹A change in trend is fueled by a change in the supply of stocks investors want to buy compared with the supply of available shares in the market.
🔹Uptrends are often coincidental with positive changes in the factors that surround the security, whether macroeconomic or specifically associated with a company's business model.
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The Psychological DANGER of Counter-Trend TradingI see many traders consistently trying to fade the trend, but be careful.
In this post, I will explain the psychological problem that can arise from it.
Every time you get something that you want in life or that is pleasurable, you get positive reinforcement,
and your brain says "I want more of that stuff"
and then the brain says: "Keep doing what you are doing" ---> Behavior is learned. (Your neurons in your brain got linked together).
Once the behavior is learned, and the neurons linked, it is very hard (near impossible according to behavioral science) to extinguish this learned behavior! Old habits die hard.
Thus, the trader keeps doing the behavior that over the long run will generate losses. WHY? because reversal points are momentary while trends are prolonged and if the trader is trying to constantly make money out of the market, he continues to do the learned behavior, hoping that "NOW there must be a big correction", even though a correction can be many months in the future.
So now you are probably asking: "ok Mr. Ph.D. in psychology, what is your solution? I already learned the wrong behavior, am I doomed?"
According to science, there is hope, instead of trying to extinguish the behavior, you need to re-write it with the new behavior (replace it with a new behavior).
What does it mean in a trading context?
That means that if you are in the past got burned from counter-trend trading, it is recommended to join the trend --> you will generate profits ---> positive reinforcement ---> newly learned behavior ---> ah-ha moment
EDUCATION _Trend duration All trends can be divided by:
short-term;
medium-term;
long-term.
To determine the duration of a trend, you need to use senior timeframes. In classical theory, trends are divided into annual, monthly and daily trends. For scalping, as a rule, we have enough:
define a long-term trend on a 1-day chart;
medium-term trends will be 1-4 hours;
short-term trends at 5 and 15 minutes.
Thus, we can see the picture, when a single long-term trend consists of several medium and short-term trends. This is often the mistake of beginners. They put one frame, like 5 minutes, define trends, but forget to define medium- and long-term trends. And then they wonder why this price has suddenly turned around at 5-minute. That's why on another timeframe the picture looks different.
Say, what do you see on these 5 minutes?
Does the price, like an abnormal price, fall down after a side movement? Absolutely.
Thus, we can see the picture, when a single long-term trend consists of several medium and short-term trends. This is often the mistake of beginners. They put one frame, like 5 minutes, define trends, but forget to define medium- and long-term trends. And then they wonder why this price has suddenly turned around at 5-minute. That's why on another timeframe the picture looks different.
Say, what do you see on these 5 minutes?
Does the price, like an abnormal price, fall down after a side movement? Absolutely.
the same chart looks like on the 4-hour time frame:
It is very important to understand where we are in the trend.
You can see the types of trends in this post:
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