Trend trading

Staying with trend means following the swings. If price is rising the swings will be rising so we only want long trades, when price falls with swings making higher highs and higher lows it is retracing offering an opportunity to enter long or increase ones position. Stops are always the previous swing low as we do not expect them to be crossed by price.

Alternatively if the swings are falling, lower highs and lower lows then we only want short trades, prices rising when the swings are falling means it is retracing and an opportunity to enter short or increase ones position.

With swings that are falling the stop loss is moved down to the previous swing high with each new low and high made, therefore if price should rise past the swing high it will close the trade and it should leave a profit. Likewise if the swings are falling the stop loss is placed at the previous swing low and moved up with each new high and low made, so if price should fall past the swing low again it will close the trade and leave a profit.

This method works on all time frames. The hardest part of this method is not to be tempted by the retraces and to trade the swings with no gray area. Therefore if price moves against our trend and crosses above or below making a higher high or a lower low - then we have to anticipate that direction is changing. It is not fail safe but works fairly well. One can day trade the swings or take the trade on as a longer term play. I did not include zones - I think letting the swings determine target is sufficient.

Nice explanation.

Following

Im going to put the Yen chart up before market. Price made a higher high and should have shifted price to moving up - the return swing is in progress and should be a higher low. However with the inset swings moving down still it is not in a position to long untill these smaller swings turn upwards...with a grain of salt as sunday openings can be volatile throwing your best analysis out the window

Premarket Yen has made a higher high so I would be looking for a higher low

So we had the higher low then a break of the swing high. So the retrace area is in blue - the previous swing high and the previous swing low. We expect the swing low to hold as price retraces, looking for a long opportunity

This is the follow up chart to UsdCad up top - price continues to make higher highs and higher lows - so I have to treat this pull back as a retrace and will look for a long entry. The swing low needs to hold and the swing high above, we expect to be broken

Its been awhile since I posted. UsdCad on the 1hr with supply above - looking for supply to hold price here

AudUsd has fledgling support under it - I think if it can make a higher swing high it may gain momentum here

Swiss has hit the first of two supply levels above price - appears to have formed a fledgling support above price - looking for a move down from here

GbpCad has a fledgling resist appearing above price - looking for it to hold and send price down into the supports below

NzdCad with fledgling resist above price

Japan monetary policy comes out today. Price is inbetween resist and support. To turn resist to support above price it would need to trade above 106.46

That is better

Follow up for GbpCad - Price did trade above supply before finally falling

Follow up for AudUsd

UsdJpy is above resist and doing well

I had to reproduce the chart but it fell nicely out of supply to demand

The swiss trade just plain failed - stopped out

UsdCad has potential to fall further but that first line of resist at 1.2917 is where I would place my stop couple pips above that

Fledgling resist has formed above price - support remains underneath price - looking for price to cross below support resetting it to resist -