Step #1: How to Identify Trends?
1.) Trend Patterns
🐂Bullish Trend: Higher Highs & Higher Lows
🐻Bearish Trend: Lower Highs & Lower Lows
2.) EMA/SMA Crossover
🐂Bullish Trend: 9 EMA crossed upwards 21 EMA
🐻Bearish Trend: 9 EMA crossed downwards 21 EMA
🎯SMA Trend Strategy:
https://t.co/LWRz1p2v0i
Trend Patterns Example #1:
📈An uptrend is a sequence of higher lows and higher highs made on the chart.
📉A downtrend is a sequence of lower highs and lower lows made on the chart.
🎯If the market’s not trending, its consolidating (going “sideways”)
Trend Patterns Example #2:
🎯Prices very rarely move randomly (I'd argue they never do)
🎯Often mistaken by retail as market manipulation (MM's), when in reality it is just a PATTERN you have failed to recognize, see below
Trend Patterns Example #3:
🎯This is a clear bull-trend as each high is higher than the previous, and each low / pullback is higher than the previous.
🎯Many retail get STOPPED out then the trade may move higher even though the trend may still be intact
So how do we play them?
Trend Patterns Trading Example:
🎯When we identify a clear trend I like to draw a trendline or channel
🎯When in a bearish trend (lower highs & lower lows) I love to add puts right at the upper trendline resistance to play WITH the trend
🎯Risk/reward is great I use 10% SL
For more in depth content with screen-sharing check out my YouTube:
https://t.co/Ca5lhL0h6D