In search of trend days (strategies and techniques)

That day, during which the expansion takes place daily trading range, with prices opening / closing are located at different ends of the range, side by side next to the large and small values of trading day, the day is called a trend.

During the first 30 minutes of trading the price movement is not more than 10% of the total for the whole day. This kickbacks indicators quotations during the day (trading day) are small. Trend day occurs during the large gap in prices during the opening, which create deficits purchase. In this case, the market opens and closes on the extreme values of prices.

During the whole trend of the day prices reach more and more new maximum


/ minimum values. At the end of the day is increased volatility, which is one of the characteristics of trend days. It can be directed as toward the underlying trend on daily charts, and against him. In a trending day the main thing is that the increase in trading range and increase the difference between minima and maxima gives a possibility of profit within a short period of time.

Even if a trader works only on intraday scalping, he must know the properties trend of the day. If a trader observes trend day, it should abandon the analysis of oversold / overbought, support / resistance levels, and switch to the methodology of breakthroughs, while being careful to buy at new highs, and vice versa during the sell new lows.

That's only if the trader will lose control of the situation, he may suffer the maximum loss, if it is to buy at new highs and selling at the new minimum. Since kickbacks during the day can be quite rare and very small, then small at first glance, the loss can turn into a huge. The worst in this case may be an attempt to averaging unprofitable trend within the trend of the day.

But determining the conditions that might indicate to us the unfolding trend day, it is possible. This can be done without any problems immediately after the close of trading. Trader in this case will need to prepare a plan for your trading day. Also required to determine a stop and stop-short-long warrant on certain levels.

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