Trend Trading... and a $23,740.25 Profit in ONE DAY!

Let's start this post with an important definition of what and who is a trend follower, and this is the best definition I could ever find. It comes directly from the book called "Trend Following" written by Michael Covel, and it's easily in the top 10 trading books I ever read... and believe me I've read dozens upon dozens of them!


Ok, so lets being. Trend followers do not try to predict the future, they simply only follow the trend in price action and the direction of momentum. Trend Followers go both long and short based on their systems with no bias to bullishness or bearishness.


While they do have drawdowns, just like every type of trader, they normally have big returns because they focus on the bigger picture move.


I for one am not a trend following type of trader... in a day and occasionally swing trader but I do always like to know where the trend is going because I love trading based on momentum and breakouts, and just grabbing my profits on a daily and weekly basis... and that is because I live off the markets.


The services my company charges are very low, we start at 9$ monthly and the maximum is 49$... while most of "trading educators" charge massive fees to traders I like the untraditional way because we have a retention rate, people stay with us because we offer them value and truly have something great to offer, while the rest of the industry needs to grab all your cash ASAP simply because they cannot keep you as clients.


Anyway, this post is not about promoting our services, it is all about an added value to the reader, so let us continue.


The way I trade is pretty simple, I look to trade with the momentum of the move using basic indicators like Moving Averages and then connect it all with technical analysis and that is exactly what I did today on BTCUSD (Bitcoin vs US Dollar) where I went long after price broke out of a normal accumulation.


Before I explain the pattern it is essential that you understand how the mental side of trading works... and I will give it to you in a short quote:


Trading is a game of probabilities, not certainties... we do not predict the market we simply follow it with a proactive mindset and focus on the law of averages.

It's now time to share with you the results generated today, 5th of August 2020, on the Bitcoin buy trade setup... and I'm proud to say that this is our biggest winner this year!


You can watch the video of the live trade here and see that we are trading a live account, just click here for the confirmation.


Done with the show, now let's move to the recap of the trade.


4HOUR BTCUSD CHART


In the image below I have marked the resistance levels with the red pen, but it is important to understand the way resistances work, at least to me, it is as follows:

  • It is a make it or break it scenario every time, and in today's case it broke it which increased the support of the buyers making BTCUSD stronger by about 4% *Key point about support/resistance, volume tends to increase if the key level works or is broken. So, as a final point, the resistance broke and was supported by the DC and the EMA combo which were below the price when I went in.


As you can see, the system is pretty simple... no rocket science and no 100% guarantees, just like life, our trading system is Risk vs Reward.


Now, let's zoom in better and show exactly why we entered, that can only be seen on th 1H chart.


1H BTCUSD CHART


On the 1H we had a classic continuation pattern which can be seen in the accumulation area (blue triangle).


Price action created the accumulation and then created the 1st of 2 breakouts of the 1H chart, both breakouts are entry signals.


My entry was a little after the first breakout, and I told my community that if price broke the second level, the main resistance, I would start compounding the trade... and as you can see above in the image a total of 5 trades were added giving us a total return of $23.7k in one trading day!


I really hope this post helps you in one way or another... and if you want to learn more from me and my team just head over to PrimedTraders.com and enroll... memberships starts at just $9.


See you soon!


PS: We provide a Copy Trading service at PrimedTraders.com check it out!

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