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Trend Trading Secrets the Pros Hope You Never Find Out | Price Action Trading

Trend Trading Secrets the Pros Hope You Never Find Out | Price Action Trading

so here’s the thing right you know that the trend is your friend right traders have told you you should be trading with the trend foreign trading is the real deal right this is how you know you make money in the markets but if you look at the charts right the screen on my chart right now you can see that this is an uptrend okay this second shot over here it’s a downtrend and this chat over here is another downtrend and one thing that I want you to pay attention to is again look at the first chart again notice this over here has a shallow pullback shallow pullback second one over here they have this chat has a much deeper pullback okay deeper pullback a deeper pull back over here and finally the touch chat you have even a deeper pullback over here so here’s the first secret right of trend trading not all trends are created equal right I don’t know why traders don’t talk about it they talk as dude friends they’re all the same but it’s not they are not created equal right and that’s why in today’s video I want to share with you the three types of trended every trader must know because if you do not know what other type of trends out there you can still lose money even though you’re trading with the trend so that’s the first thing we’ll cover and then I’ll share with you when is the optimal entry point right to enter a trending market depending what type of trend it is and finally by the end of this video you will be a professional trend trader who can handle who can profit in the different types of trending market sounds good then let’s begin so firstly right the first type of trend I want to share with you is what I call a strong trend a strong trainer is when the trend is strong ok so how do I actually define a strong trend it’s when the price right respects the 20ma so this over here is the 20-period moving average and as you can see the market remains below it so this gives you a big clue right then this trend is actually strong that’s why it has been consistently below the 20ma so how would you trade a strong trend ideally right you would want to treat a breakdown or breakout so in this case since it’s a downtrend you want to treat the breakdown right a breakdown of this swing low this swing low over here or even this swing low why do you want to trade a breakdown because in a strong trend right sell them right does it do a nice pull back for you to time your entry seldom does it retest a moving average seldom does it’ll retest a new resistance so if you look at this right it only tests that the moving average over here once and then here over here it didn’t test here didn’t test any we were waiting for it to come to the moving average if you are waiting for it to come to the previous swing high the previous swing high you will be disappointed because the market it’s in a strong trend that’s why it doesn’t have a deep retracement so if you want to treat pull back or retest our key levels again you will be disappointed that’s why I say that you know in a strong trend it’s ideal to treat breakouts or break down so in this case you can just simply go short right when the market breaks below the swing low the swing low or even the swing low over here and to set your stop-loss all right ideally you want to set it beyond the 20 MA don’t just put it above the 20 ma because what could happen is the price on you can see over here it’s spiked up higher and then collapse lower so give it a distance give it some buffer above the 20-period moving average all right that is I would say ideal way to create a strong trend right to create a breakdown okay or breakup if it’s in an uptrend so that’s the first type of trend that I want to share with you the second type of trend right that I want to share with you is this alright let’s look at the Aussie dollar okay it’s what I call a healthy trend how do you know that a trend is healthy all right a healthy trainer usually has a clear pull back towards the 50 period moving average so this means right then you can actually time your entry towards the 50 period moving average if you look at this right over here the market has tested the 50 ma once twice thrice almost here four times and five times over here so you can see that in a healthy trend what you do to do is to wait for the market be patient and let it come back towards the moving average in this case this one over here I used the 50 ma to define a healthy trend so you can see that the price retest the 50 ma over here we have a bearish engulfing price close lower this one if a shooting star pattern before you know closing near the lows of the candle so these are all entry points that you can use to trade in the healthy trend and one tip that I want to share with you is that based on my years of trading trends that I realized that in a healthy trend the market also tends to respect previous support and resistance or previous resistance ten support so you see over here right this over here is previous support and resistance previous support and resistance and over here previous support 10 resistance so you can see that on top of it right a confluence factor then you can look at this not only the 50 ma but also at previous support and resistance right this is where there’s a good chance of the market no reversing in a healthy trip and very simply right to time no entry just wait for I know a reversal candlestick pattern and you can time your entry and again don’t want to set your stop loss right just above the moving average you can see that over here right price spike through the moving average then it collapse lower give it some buffer give you some distance away from it you can use an indicator like the average True Range or just eyeball and give it some buffer maybe set your stop loss right somewhere about here your stop-loss somewhere here okay so this is how you would go about trading the healthy train so what I don’t recommend right in a healthy trend is that you don’t necessarily want to treat the breakouts over here why is that because if you look at this right in a healthy trend the market tends to pull back towards a moving average so if you were to trade let’s say for example breakdown of this swing low you can see that the market went slightly in your favor and then you have to swallow this deep pullback against you so in a healthy trend this would happen often if you were to we know trade breakouts you would have to end your quite a sharp ooh back when it comes back towards the moving average it doesn’t happen often right but more often than not it will do a pull back like revert back towards the mean so this is why I don’t really recommend trading you know break downs of breakout or in a healthy trend it’s much better to you know time your entry and wait for a pullback either towards the moving average or previous support and resistance okay and moving on right in the last type of training I want to talk about is the wick trend so for example a wick trend I a weak trend usually occurs right when the price doesn’t respect the 50 period moving average anymore it tends to exit beyond it so you can see it over here right this is the euro dollar price has been respecting the 50 ma and then over here it trades beyond it and over here it trades beyond it even further more so how do you actually tray the wick trend so this is where your support and resistance comes into play right for example based on this chat with you I identified that this is an area of resistance right so what I’ll do is that I will now time my entry and resistance since this is a Down train so price right came into this area of resistance right shows price rejection over here you have this dragonfly doji rejecting the heights then the next Kendall had a slight bull candle and finally this third candle reverse lower towards the downside with the bearish clothes so this is a sign of price rejection and if you look at this right it can look to go shot again stop loss so I said it that distance away from this high somewhere about here and this is how you can surely trade the wick trend when price comes towards an area of value like support or resistance okay so just to do a quick recap right trend trading secrets number one strong trend right price tends to respect the 20ma it’s ideal to trade breakouts in a strong trend trend trading secret number two healthy trend the price tends to respect the 50 ma this means that you won’t exceed beyond it right and it’s ideal to trade pull back towards the 50 ma or even previous support and resistance and vice versa and touching right in a weak trend the price tends to treat beyond a 50 ma some time testing 100 ma or even a 200 ma in cases like this is ideal to trade pull back towards support or resistance so now just a additional quick tip to share with you right so the concept right of trading breakouts for the weak trend okay uh we train it’s uh let’s talk about the goal ok cool is that although you are trading breakouts okay say for example the 20 ma over here although your trading breakup do you want to use a little bit of a discretion over here so is the same thing as the healthy trend if you notice that the price has really broken up sale over here yes you know Raina say you know to create breakout and if the market is really breaking up at this point over here okay are you sure that you still want to chase the market at this point even though it’s a strong trend even though it’s breaking down are you sure you still on go shot because if you think about this right right now number one the price is very far away from this 20 ma and if it decides to snap back pull back towards the mint like a rubber band no spare no pull back towards the mean you have to potentially and your dere retracement so is this a good trait that you want to take I don’t think so right I don’t want to be trading when the price is so far away from the moving average if you combat that right to this let’s say over here no let’s say over here the market over here if you do go shot is much nearer towards the tweeny MA so even in the pullback or to come right you don’t have to endured that much pain whereas you come back to this portion over here this is a lot of distance a lot of distances that you have to end your as a pullback so again you want to watch where price is right relative to the moving average if it’s too far away I usually no suggest you know trader wait for the price to come to you okay this is important okay in this case right market did as a steep pull back and right now is just consolidating you know near this around the twin DME we pick up and now okay so that’s the first tip that I want to share with you and I you interested for an additional tip okay let me share this with you right so what I’ve just shared with you as entry points is number one we treat breakouts and number two we trigger the pullback by using very basic reversal candlestick pattern but what I’m gonna share with you is more advanced stuff right in it’s ideally for traders who have really been trading for at least a year or more it’s because you can actually use multiple time frame to time your entry so let me share with you an example okay so let’s look at our see dollar you know that it’s in a healthy trend right because I just I just shared that with you okay so just pull out the 50 MA and you see the Aussie dollar over here came into this area of value okay this are 50 ma so one way you can go buddy is that you know traders they can just go short based on this reversal candlestick pattern alternatively if you want to you know better time your entry have a better risk to reward you can go down to a lower timeframe like the forward and time your entry and you see over here on the forward timeframe notice right that the market has actually formed a well if you ignore this spike right this spike over here is pretty much of a lower hi Anna sorry a lower low and a lower high over here so at this point in time right when market actually break and close below below this a swing low you can go shot okay somewhere here market break below this swing low you go shot over here and set your stop-loss Ryan just a distance away from this high maybe just slightly above it so instead of originally when you’re trading off the daily candlestick pattern the daily price section your stop-loss right would go a distance beyond this high but right now if you go down to the lower time frame you can see that UK kitty reduce the size of your stop loss and improve your wrist or Ewok so you go shoppin on the break of this loss and this n stop-loss just a distance above this highs somewhere here right so this is now your stop-loss distance okay instead of the original distance which is there I know much further over here so this actually improves your risk to reward on the trade and this is what I call the year reading the price section identifying weakness right and then getting a tighter stop-loss on your entry so this is one example the Aussie dollar okay let me share with you another example let’s see what else I can find euro dollar at something similar as well so this concept can be applied where there is a strong trend healthy trend or a weak trend so if you look at euro dollar okay notice over here again market came into this area of resistance of course traders can no trade this daily reversal candlestick pattern or alternatively if you want a better risk to reward on your trade you can go down to the four hour time frame and look for this what we call a break of structure so again you can see over here at this point where you have a series of higher lows higher lows and higher highs but over here this juncture things have you know start to change right the highs and lows are pretty much equal now and the first clue that tells you that the sellers are in control when it occurs when you actually break over here a break and close below this area of support okay and again if you just reference your stop-loss right you can reference it from this swing high on this swing high over here these two levels and again you would have a tighter stop-loss right compared to trading it on the daily timeframe so this is a very powerful entry technique it involves the use of multiple timeframes basically right if you’re looking to shot what you’re looking for is that market will be in an uptrend on the lower timeframe then it breaks the structure it breaks this a previous swing low structure can then go shot on the on the break of this swing low stoploss just said it a distance away from this highs somewhere here can see there you have a much tighter stop-loss in this case right and hopefully you can write the trend down lower and on top of it right if you are if you think about this right you are you’re leading against structure on a daily timeframe like this euro dollar tree you’re leaning against the resistance over here on a daily timeframe which is this level the Aussie dollar you’re leaning against the 50 period moving average which is another market structure that the market has respected okay so this is a additional tip for you I believe it would really help your trading it can be applied whether you’re trading support resistance a weak train a healthy train or even a strong trending market if you don’t believe me let me share with you another example just one final one okay so powerful that I have to share I have to share more with with you so this is the chart of silver okay if you look at this right 20 ma no sorry – any ma you daily time for you so if you see over here I get same phenomenon right strong trend rejected over here on the daily timeframe again you can just trade off the price rejection on a daily but if you want a better risk to reward on your trade you can go down to the forward timeframe and just look for the breakout structure pattern I mentioned which are cut over here notice over here this is the 20 ma where the price bounced off over here Aloha high and low a low can look the go shop in the price break below this lower low stop-loss so I just said it a distance away from this high you can see in this case you have a much tighter stop-loss and you know a better risk to reward on your trade okay so with that said right I have come towards the end of todays video just a super quick recap strong trend tends to respect the twin ma ideal to treat breakouts healthy trend tends to respect the 50 ma ideal to treat the pullback to us the 50 mm or previous support and resistance and a weak trend the price tends to trade beyond the 50 ma ideal to treat a pullback towards a market structure like support or resistance then we talk about trading breakouts right you want the price to be near the moving average as near as possible if it’s too far you have to end your and your the pain when the pullback comes and you you don’t really want there okay and finally we talked about the break of structure technique how we can go down to a lower timeframe to better time your entry and get a better risk to reward on your tray so a lot of stuff I’ve shared with you in this video and really if you wanna learn more about my trading strategy the way I traded markets just go down to my website trading with Raynor come over here scroll down write today we’ve talked a lot about trends so if you want to compliment whatever you have learnt today I recommend downloading the ultimate guide to price action trading we will talk more about entries and exits market structure support resistance and much more so go ahead download this guy just click this blue button over here and I’ll send it to your inbox for free ok so that’s it I wish you good luck and good trading if you’ve enjoyed this video do me a favor will you hit the thumbs up button subscribe to my youtube channel ok I would really appreciate it and you’ll always be updated whenever I publish such content like this and if even if feedback questions leave it in the comment section below I will read every single one of them and I’ll do my best to help you so that’s it I will talk to you soon you


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