We used yesterday as a starting point to help traders begin the process. We discussed trend trading as the easier style to learn as a beginner. The market was bullish, and we played bull trend lines.
DAY 2, let's try the bearish trend lines. A great trend line back-to-back day for both sides of the trade.
THE FLIP:
The market flipped to bearish in the Euro Zone and would be the dominant trade. Again, no counter trend trading and stay away from micro ranges trading.
The one point range bar chart
The five minute chart:
You start by reading what the market is saying, and both charts support a selling bias. You draw your trend lines and wait. Play the resistance (yesterday was support) at the trend line, at the EMA, or if you see the trend line hold, play the crossing of the EMA. YOU ARE ONLY TRADING SHORTS.
Once in the trade with the trend, you try to hold until the trend line is broken, or until your market target is reached. When you go "live" this will test your emotions as price fluctuates.
You will develop your trend style with practice. Note the two mini trends within the day trend. Each had an entry point per the trend rules, and both had an exit when the trend was broken. Until you build experience, the mini TL will likely be your trade. Holding for longer periods will test your emotions, even with the trend.
Should price break the trend for the day, you stop trading and draw new trend lines with the information. Wait, analyze, trade.
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