After 15 Years of Scalping, This Trading Strategy is The One

yes yes yes what's going on ladies and gentlemen today i'm going to talk about trend trading i have been trading the markets and scalping the markets for 15 years and i found out that it's much easier to go with the momentum versus trying to fight momentum okay now i do trade against the trend sometimes but for the most part i trade with the trend and that's it so today i'm going to show you how to trade with the trend and i'm also going to show you trades that i took this month trading with the trend okay so let's go now before we get into how to trade with the trend let's talk about how to identify the trend first okay so if you're looking at the market we want to see higher highs and higher lows right for an uptrend so we'll have an uptrend right here we're looking at higher highs and higher lows that's a simple way to look at the market and the same thing if the market is going down right we are looking for lower lows right lower highs now the market usually doesn't look this smooth okay so the best thing to do to really identify the trend okay right away is you can plot a 20 moving average on your chart okay you can either use a 20 moving average or a 50 moving average usually for day trading i like the 20 moving average right now you plot the 20 moving average on your chart and it's going to look like something like this okay and it's going to help you identify the trend because if the market is above the moving average that usually means that we are in an uptrend and if it goes below the moving average that usually means that the market is probably changing and the market is probably going to trend to the downside now another thing you can do which i do i use trend lines okay so instead of using a moving average i like to use trend lines and i connect those trend lines to the recent swing highs and swing lows so let me show you guys some examples of trades that i took this month trading with the trend so let's go now what strategy should you use when it comes to in the trend okay i like to use support and resistance right and i like to use supply and demand so right here is a trade that i took with the trend so notice how we have a nice downtrend what do you see first first i see the market is below the moving average which is the 20 moving average okay so if it's below the moving average this is how we can tell that the market is in a downtrend or you can use a trend lines so the way i like to use my trend lines i always adjust my trend line so right here i'm always taking the recent swing highs if the market's going down so right here we have the market going down i would take these swing highs and this would be my trend line now notice how the market moved down right here okay so i'm not using this trend line anymore i'm using the recent two or three swings so the reason to let's say the market is right here so let me move this here so let's say the market is right here i'm gonna use the recent two swings okay which is one two and i'm going to use this as my trim line okay now if the market keeps moving down i'm gonna keep doing that okay we have these trend lines right here the market is moving down right here i'm going to move these trend lines to right here right the market is moving down now i like to use this because i'm using price action only so i like to connect it with trend lines that's how i use my trend lines you can use a moving average if you want whatever is better for you so here's how you trade the trend if the market is in the downtrend right and you see aggressive selling right here we have a lot of selling right here a lot of times the market will come back okay to the original candle that started to move and it will come back and react to that area so the trade i took is right here i was waiting for the market remember the market is in the downtrend so i'm only looking to go short the market pulled back to the supply area and it gave me a nice rejection nice bearish bar i went for a quick one to one now in the trending market you have to understand if you are late in the trend like right here the market been trending down for a long time so i know for a fact i can't get a decent risk to reward meaning that right here this is a one-to-one i can't go for a ten to one or five other one because the market been trending down for a long time and if you know anything about the market the market is like a rubber band once it gets stressed out too much it's going to snap back and see right here the market is snapping back right so notice how the market is going above the moving average that usually means that it could be a possible reversal okay so the way i would do it is you can look at your moving average or i would draw these swings right here it broke this trend line this could mean a possible reversal a lot of new traders they get really confused when it comes to this because when they hear things like okay if the price is below the moving average only look for shorts if it's above the moving average only look for lungs but what they forget to realize is you still have to look for support and resistance so let's say i'm going along right here you have to understand that it's resistance right here so if you're trying to go long right here you have to understand you can't go along right at resistance please understand that because i see it all the time new traders either go long at resistance or they go short at support so you have to keep that in mind now let's go to another example of me trading the trend okay here's a good example right here guys all right so overall the trend is up okay the market hit the support level right here again i like to trade support and resistance when the market is trading or supply and demand to me we have support right here support right here support right here the market bounced off to support multiple times and i took this long right here and this was a quick momentum trade to the upside now i like again i like momentum trades like trading with the trend because usually it's going to show you your results real quick trading against the trend sometimes the market might not go your way right away it might chop around for a long time because remember you're trying to stop momentum if a train is going full speed why do you want to try to you know stop the train it's much easier to ride the train versus trying to stop it so that's pretty much the concept okay so let me show you guys another trend trade okay so guys here's another trend trade if you tell the market it's trending right here right um we had the market at support right here look at this okay support support support okay now this is where the market pulled back to support i got in for a quick one to one and i was done for the day now if you know anything about me i don't trade that much i like to take one or maybe two trades a day because to me trying to trade the market over and over and over it just means you're gonna make more mistakes so when you're trading a trend don't think you can just keep trading the trend over and over and over i see a lot of new traders make that mistake they keep trying to trade the trend over and over and over you have to understand the trend is not always going to keep going in one direction it's going to pull back so you can't just keep trading and trend trading and trend you have to understand when to get in and when to get out i like to target either the swing highs okay to get out or a support level or resistance level to get out okay so let's go to another example okay so here's another example right here we have clear resistance okay look at this resistance resistance like this is clear right here guys resistance resistance resistance resistance so as soon as it shot up boom i saw that it was rejecting resistance i went short right here okay and i took my profits because you know the market pretty much was trending you know a lot already i'm not trying to look for a ten to one okay you have to understand the market's like a rubber band and eventually this snap right back up okay so you just can't just continue to trade the trend um sometimes i take you know maybe two trades with the trend or sometimes one trade with the trend so let me show you guys another example okay guys so here's a good example right here trading with the trend the moving average is below the moving average right and also below the trend lines okay below your trend lines right here so we have the market breaking this support level now turn it into resistance the market came back to that resistance let me move it down so you guys can see right came back to that resistance right here i saw that it was rejecting that resistance with a nice bearish bar i got in and i went for a quick two to one right so again the strategy is very simple either support and resistance or supply and demand now every single day is not going to be a trending day i'm just showing you guys a trending strategy that works for me and it's much easier to go with the trend versus trying to fight the trend now there are days where the market is chopping back and forth and i do trade those days okay let me show you guys a quick example so here's a quick example right the market is chopping back and forth so right here we have support okay almost like a inverse head and shoulders right so we have support bouncing off the support i bought this okay when i saw this nice bullish ball right here and i got out for quick one to one so i know how to trade you know sloppy markets like this you just got to wait for you know the right moment you can't just be you know trading back and forth just gotta wait for high quality trades but for the most part it's best to trade with momentum okay and trade support and resistance or supply or demand with the trend okay and once you get good at that you're going to realize it's much easier to do that now you still have to study the other days because other days it's not going to look smooth as a trending market so you still have to study when the market is ranging back and forth how to play those markets in the best time to get in the market when you're trading those markets okay so that's pretty much it that's all i have for you guys today i just want to make sure you understand how to trade it with the trend and i want to show you guys my trades and my examples of how i'm trading the trend okay if you enjoy this video hit that like button hit that subscribe button and if you want to learn how to day trade and take your day trading to the next level please check the description i do have a trading program for you guys also since i have 400 case subscribers i'm going to celebrate a discount is out for my trading program so take advantage of that um because it's going to end very soon again thanks a lot for subscribing i appreciate all my subscribers thanks a lot for watching my content if you have any questions comment below and please have a good day

Channel: Day Trading Addict

Views: 527,945

Keywords: Scalping Trading, Trading Strategy

Id: AaGaYxorSBo

Length: 11min 6sec (666 seconds)

Published: Fri Sep 02 2022