WAYS TO DEFINE CHANGE OF TREND: NOT an exhaustive list & how I’ll use is situational, but here are some ideas. Breaking a trendline. Holding new side of VWAP. Break of prior bars. Break of a moving average. Capitulatory exhaustive price move OR exhaustive volume exchange. (1/4)
Higher highs and higher lows (bullish trend). Change in the tape / level 2 box. Break of resistance level. Stock doesn’t go down on bad news. Relative strength vs market / comparables. And sure many more out there… (2/4)
ADVANCED APPLICATION: Now keep in mind, these aren’t mutually exclusive. Exact opposite. More of these together, the better. That is why so important to be thorough and well-defined in this challenge. If 1 indicator is good, wouldn’t 5 of these together be better? (3/4)
If these occur in conjunction, doesn’t that mean everyone using each of those 5 variables is on your team. I want to align as many traders as possible on my side of things. I want all timeframes, all tape readers, all Indicators to ideally be screaming in favor of my position.
The more timeframes & indicators & types of traders with you, the greater the imbal of supply/demand. It is by combining these variables that win rate can be greatly amplified. I only play best setups when many factors aligning. Never need to squint to be able to see the trade.
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