Continuing our series of videos on day trading chart analysis. In todays video we review a few trend continuation trades from this mornings price action on the DAX.
Every morning brings new opportunities in the markets. Using the 5 minute timeframe Anthony starts the day by reviewing overnight trading to determine the opening range for the market. 80% of the time this range provides trading opportunities for reversal trades within the range. Today was different. Today the market broke out of the range in the first fifteen minutes of trading and began a bull trend.
When the market is trending then we are always looking to take with trend trades. We are looking for opportunities that the market presents to enable us to take trades in the direction of the trend.
We assess the pullbacks that the market makes in the trend and watch what happens when the market pauses. Will the trend resume or will the market reverse?
Anthony explains what he looks for in terms of price action to indicate trend continuation. We examine inside bars and fakeouts that occurred during the mornings price action to determine entry points for our trades.
This is a strategy that we use daily in our trading. Traders only need one or two successful trades a day to make a living from the market. The key is to have a plan, a trading system that works and then to execute the plan. This is what Anthony discusses and illustrates in the video.