A special tip for everyone today, I wanted to reveal how I trade trends and how I know when a new trend is actually forming and to start trading the other way. This is very important, the main reason being is most traders even good traders will do fine with trading but seem to have trouble as soon as the trend changes on them.
Well, this solution will help. Basically put, it will show where to get in and where to step out and once again we will be referring to the weekly charts. That is because they work time and time again.
Watch the video above to see how I do it.
Some common questions I get asked..
When Do I get in on the trend after weekly signal..?
You get in on pullbacks but I will reveal that in a later video to show exactly how i do it. Stay tuned for that future video and subscribe.
When Do I get out of a trend?
I usually ride the trend as long as it goes or until i have a losing trade.. Sometimes that can be as much as 8 to 9 trades before a loser as trend trading is high probability. The recent bull move on the EURUSD gave out more than 14 successful trades in a row.
Why Engulfing Weekly Entry Signals, why not lower time frame Engulfing’s for deciphering the Trend?
In Forex you need confirmation of everything and weekly has no noise, the signals are much better than any other time frame and they work time and time again.. Ponder on this, to get a good weekly engulfing candle it means for a whole week the buyers or sellers have control, chances are this forms a new trend.. In fact the chance is over 80% as a probability factor.
One can however use the daily chart in the same way, however one then needs to then except lower probability of it being a valid trend signal.
How Profitable is Trend Trading This Way?
It is the most profitable form of trading because you are going into the bias of the market.. You still need of confluences or understanding of support and resistance however it helps give a bias which is an edge for a trader…
How Long Do I Trade the Trend?
I trade until the trend ends or until next weekly major structure and then i pause and sees if it holds or breaks, if it breaks and continues I then proceed to trade the trend.
Update Above – Video Followup as promised on how to trade the weekly with using pullbacks on the 4 hour and 1 hour charts rather than straight off the weekly chart. Weekly chart for bias, lower time frames for pullbacks and better entries.