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TrendTrading Flowchart 2.0

This document provides prerequisites for understanding a trend trading tutorial, including: 1) TrendLines - the ability to draw trendlines on daily timeframes to identify uptrends and look for demand levels to trade. 2) Identifying common candlestick patterns (CP patterns) that indicate potential demand levels within an uptrend for trading opportunities. 3) Checking that daily trends have not been broken and that demand levels are original and fresh before taking trades based on them.

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Yarex Mason
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Download as PDF, TXT or read online on Scribd
182 views

TrendTrading Flowchart 2.0

This document provides prerequisites for understanding a trend trading tutorial, including: 1) TrendLines - the ability to draw trendlines on daily timeframes to identify uptrends and look for demand levels to trade. 2) Identifying common candlestick patterns (CP patterns) that indicate potential demand levels within an uptrend for trading opportunities. 3) Checking that daily trends have not been broken and that demand levels are original and fresh before taking trades based on them.

Uploaded by

Yarex Mason
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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READ THIS FIRST!

To understand this tutorial


you should have these
prerequisites:
TrendLines
Trend Trading
Monthly Daily Daily Daily Daily

Previous level has


Fresh CP pattern been taken out.
demand level more than
3:1 RR

Not Broken.

Price has bounced of monthly demand. We are CP patterns are the most common trade to take
Draw a trendline on your daily TF. The trend is
above 20% in the monthly curve. A TL has been in a trend. We are allowed to take all valid The previous opposing supply or resistance
up and this means we can look for demand We have a RR of more than 3:1.
drawn. We are allowed to trade all fresh daily CP demand levels. Here is a CP demand level which level has been taken out.
levels for trading.
demand levels as long as the daily trend is up. we will assess step by step.

Daily H4 H4 H4 H4

This is the H4 level


This level is valid.
inside the daily level
Trendline is
not broken.
Not hit.

D1 demand
Daily CP demand Daily CP demand Daily CP demand
H4 demand H4 demand H4 demand

But let's say the daily demand level is to big for The lowest one was not hit and this happens
This H4 demand level inside the daily demand Let's say you missed the H4 demand level. Then
And we are on the right side of the trendline. It you to trade. Then switch to a H4 TF look for a often, the momentum is to strong so the price
level is valid. The RR is more than 3:1. The H4 just keep taking demand levels on H4 as they
has not been broken. This is a valid trade. location + momentum trade inside the daily D doesn't get tested. The second one worked
demand level is fresh and original. form. But always be aware of HTF:s curve.
level. The level has to be original AND fresh. though.

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