Join coach Rivalry as he explores the fundamentals of trend trading, the way to identify trends and reversals, and the indicators that can assist you in forming a bias. Enjoy How to Spot a Trend!
TIMESTAMPS
00:25 – INTRO
00:35 – UTILITY
What is a trend?
How does a trend begin?
What causes a trend to stop?
Why is trading with the trend so important?
*In this lesson we will explore the bullish side of this scenario. It can be inverted and applied to the bearish side too.
“The trend is your friend.” – Jesse Livermore
Your biggest wins will be with the trend.
Your biggest losses will be against the trend.
Don’t be “that trader”.
How to identify a trend:
K.I.S.S. – the acronym to remember to keep it simple, silly.
Is price distributing?
Or is price accumulating?
Indicators used as intended will assist with trade management.
How do trends begin?
Data releases (aka planned news events).
Fundamentals. Data and facts in traditional markets bear weight.
Environmental and systemic risks. Ex. Global financial crisis
Breaking out of an accumulation/distribution range.
Exhaustion (aka no sells, no new lows and no buys, no new highs.)
What causes a trend to end?
Data releases.
Fundamentals.
Environmental.
Break up or down off a distribution.
Exhaustion (aka no buys, no new highs).
Huge volume drop-off after multiple large legs.
17:10 – IMPLEMENTATION
🔎 17:13 Trend Lines
Trend Lines are an incredible tool to help one visualize the structure of the market.
🔎 18:26 Higher Highs / Lows & Lower Lows / Highs
To go more in depth, see the Market Structure lessons.
🔎 19:48 Volume Weighted Average Price
An underrated tool that is highly respected across all markets.
🔎 21:39 Prior Bar Lows or Highs (One Time Framing)
This shows conviction of market participants to continue a trend.
🔎 23:28 Moving Averages (LTF 8 /24 SMA)
For the low time frame, a great tool that can help one spot a reversal.
🔎 26:08 Moving Averages (Local Structure, 50 SMA)
If you would like to go more in depth on this topic, you are encouraged to watch the 50 SMA lesson.
🔎 27:30 Moving Averages (HTF, Daily, EMA 100/200)
This provides a clear Support/Resistance flip level for the higher time frame.
29:27 – TIPS & TRICKS
★ The trend will ALWAYS be your friend.
★ Don’t discredit “lagging indicators”, especially in traditional markets.
★ The market is always efficient; traders are the ones who are not efficient!
★ Allow trend indicator combinations to assist with your daily bias.
31:24 – FINAL THOUGHTS