TRADING WITH THE TREND

One of the best ways to make easy money is to trade with the trend. To do so requires that we first identify that trend. One way is by plotting a Slow Stochastic on the large S&P contract set to 45 or 100 ticks. Once the trend is clear, it is then possible to use shorter tick intervals such as 1, 3 or 5 and wait for these shorter intervals to become over bought or over sold. If the trend is long, we wait for the shorter tick intervals to become oversold to take a long trade. If the trend is short, we wait for the shorter tick intervals to become overbought to take a short trade. By adding the premium to the equation we can become even more specific with our entries. Our final filter will be to add a volume indicator to see where the market is turning. Watch the videos we have produced and you will see how easy this is.

Trading with the Trend: The Concept

Trading with the Trend: The Mechanics