T2W Bot

Staff member
1,465 62
Capturing Trend Days
Trend days occur when there is an expansion in the daily trading range and the open and close are near opposite extremes. The first half-hour of trading often comprises less than 10% of the day’s total range; there is usually very little intraday price retracement. Typically, price action picks up momentum going into the last hour — and the trend accelerates.
Classic Trend Day – A large opening gap created a vacuum on the buy side. The market opened at one extreme and closed on the other. Note how it made higher highs and higher lows all day. Also, volatility increased in the latter part of the day–another characteristic of trend days.
A trend day can occur in either the same or the opposite direction to the prevailing trend on daily charts. The critical point is that the increased spread between the high and low of the daily range offers a trading opportunity from which large...
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CZON

Junior member
13 0
Great and concise, very useful for reference. Perhaps a few more tips on volatility measure could be useful. A plot of volatility vs time can give much insight.
 

sulong

Active member
249 15
tradershort said:
what good is learning a system that great "to learn" with but only nets low profits? Thanks Linda, but no thanks.
Capturing 2 trend days a month, is not low profit.
Learning what causes a trend day, and then acting on it, can make you very wealthy.
Learning when a trend day is not likely, can save that wealth.
 

Sweetlettuce

Newbie
7 0
Trend is a very relative term. If you are trading a 1 minute chart, how do you define trend? It always amazes me how we all spend so much time trying to "trade the trend" when the markets in their efforts to facilitate trade actually spend very little time trending. The word "Trend" should be called sentiment anyway.
 

firewalker99

Legendary member
6,655 600
Capturing a trendy day can be very rewarding. Reading the signs that alert a trader to a trendingy day are even more important. Most people are acting countertrend throughout the whole day and adding to an already losing position which they eventually have to close with an enormous loss. It's therefore imperative that we know how to recognize these days.
 

Grey1

Senior member
2,186 178
There is nothing new in this article . Most basic traders know all that any way ..

Market is made of cycles . when cycle node's ( LOW, HIGH) on different time frame match then you have the birth of a trend . Other wise you have in decision or consolidation ,

There for if you want to catch a trend you need to use oscillators to measure tops or bottoms of various cycles and position yourself accordingly ...

some oscillaotrs are better than others .. so if you want to catch that break out look for possible node matching than MACD,ADX ,MA and ... ( technical trend following indicators are worthless as they all lag and you should be selling into them and not opening a new position based on their signal )

I have said what I know , the rest is up to you to listen


Grey1
 
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