Markets are closed today, so there isn’t much I can say about price action in financial markets. I decided to give you a few ideas on how to trade in a trend. There are very many ways how to do it depending on what kind of trader you are. Let’s assume that you are an average technical trader who does not understand much about fundamentals. I do not think it is a problem, because you can have a lot of knowledge on the subject and the knowledge might be absolutely wrong (it wouldn’t work in the markets). That’s why I prefer technical analysis. I do not need to bother about reasons and predictions for this move or that. I simply follow the direction in the market.
So, by following direction in the market you simply wait for pullbacks (in an uptrend) and buy at support. Support can be a rising trendline or a horizontal trendline which joins two points where the price retraced but failed to go lower. When the price comes to the level you wait for 123 pattern (watch my video below) and then jump back into a trend trade.
Alternatively, after a pullback a security can form a short term range and stay there for a while. You can take a long position when the price breaks the upper part of the range and the up trend resumes. Buying at the support also works there, but you will probably have to show some patience waiting for some time till the security starts making new highs. So, you might take a few positions and close one when the security reaches the upper part of the range. In my opinion it is always better to buy at support and not a breakout of resistance, because you enter the market at much more favorable rates and when somebody is buying a break you already have some nice profit in your account.
Watch my video below
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.