day trading the trend I'm gonna talk about it in this video how to identify
the trend and how to capitalize on the move so stay tuned if you guys are new
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you're a longtime subscriber thanks for watching so we're taking a look here at
X in ET I don't want to look like I'm just doing total hindsight trading here
I did trade this on Friday didn't do the video just cuz it was Friday I want to
be dumb you can see here I was talking about X and ET there at 3 o'clock I was
looking for this break over that nine dollar area and was looking for some
kind of action here we're talking about it talked about a little bit earlier so
I talked about it there in the middle of the day actually at noon looking for
this break over that nine dollar area we didn't get the break so that I was
thinking okay now it's time to maybe go short so you can see I talked about
going short later on there about the end the day you can see here I ended up
going short there at the 890 area to end up covering there 855 8:32 so we break
down this move here on X in ET this is the 5-minute chart you can see X in ET
opening up there at the 8 dollar area making a move here had a pretty strong
trend most of the day around 10 o'clock we started moving higher this nice
strong trend here following the EMA higher this is the 20 EMA you can see
this trend going higher higher bouncing off the EMA there and making these moves
you know getting through that resistance pulling back finding support getting
through the resistance pulling back final support but overall moving higher
so from that 870 area to about $9 area we have a nice trend going there you
know a nice green candle a little bit of a pullback finding that support again
make it a new green candle new high they're pulling back find the support
then a big green candle up to that nine dollar area getting stuck at $9 898 high
of day and not getting above that $9.00 so I was looking to get in there above
that nine dollar area looking for that nine dollar area to break and look for
that trend to keep on moving higher you know up to the 950 ten dollar area if
this really had the power to go higher but you can see the overall trend here
going higher going higher and then we break through the trend here had this
nice trend from about 11:15 to about 12 you're thinking okay this is good
Sallah dating here is his fighting support it's got to move higher from
here but instead we moved lower we came down here we tested the twenty EMA we
got back down there to that 870 support here yeah from there it's like okay
maybe this is a good dip I I maybe this is gonna make new high get to that $9.00
arrogant but instead we got down here to 870 which is previous support there and
we got back up there to 890 found resistance there at the 890 area it
couldn't go higher so I end up going short there at 890 looking for that move
back down here to this previous support area so I'm thinking okay that 870 area
was previous support we bounced off it just now I'm thinking we're either gonna
hit that 870 area one more time maybe we bounce back up to 890 but overall I'm
looking for this to go back down so we made that high of day there at 898 we
pulled back we couldn't get up to that high of day
again we had that double resistance there now I'm making higher highs here
on these two 5-minute candles hitting there at eight nine two getting stuck a
lot of sellers you can see the tops of these candles haven't selling selling
pressure there this did not want to go higher from there so that was a very
clear indicator that there was pressure there with a 90 area $9.00 area
resistance and this was losing steam so after it couldn't make that new high I'm
thinking okay the trends broken we're not going higher we're not having the
power the volumes it's not coming back and we're just kind of sitting here
working the worse I go short there at 890 maybe we bounce off this 20 EMA here
at the 880 870 area and then get one more run back at high of day if that
happens I have my stop-loss there at the high of day at 898 if we get over $9 I
would cover my short so I basically go short here at 890 cover my stop
I'd have my stop at the $9.00 area if we could break through $9.00 obviously I
need to get out because it's trending higher but if we can't get above that
that means it's gonna trend lower and that's exactly what worked out here so
890 area resistance we pulled back we got back up here had a little doji for
him there at 887 area very very clear this was not gonna go higher at that
point so that we pulled back we found that support there one more time 870
kind of bouncing making lower highs lower highs and then finally breaking
through 870 there and moving lower we pulled down here to the 8:35 area I
ended up covering here the first 500 at the 850 area we had
previous support there that half-dollar there 850 took 500 shares there and then
we got this move down here to the 830 so you can see previous this morning at
10:30 we balance off the 830 area had that support there and again we were
balancing there 8:30 so we're pulling back down to the 8:30 support area ended
up covering here I could have probably rode this a little bit longer I could
have followed the trend you can see we weren't making new highs we weren't
getting back up there this 850 area from earlier resistance this 860 area so if I
would have been short here at 890 I could've up my stop here on the high of
this candle even the high here put it like 856 857 area probably 860 could
have had my stop there at 860 and then let this trend lower if it wanted to go
lower so I could have put my 500 shares here at 860 and let this trend go lower
but instead of end up covering there at 8:30 you can see by the end of the day
here we got all the way down there to 785 after hours it pulled down there to
about 790 so it ended up getting back to where it started at at the beginning of
the day I think it actually ended up going red on the day after being up like
10% so following the trend here is key following the trend on the way up not
fighting the trend one of the things I see people do a lot of times they end up
storing too early or they end up going long at a bad time you don't want to go
along at the top of this trend here going in there at 898 if this can't
break over nine dollars looking for that trend to hold here so obviously the
trend doesn't hold this is now pulling back and you're thinking okay maybe I'm
gonna dip by here but if this can't get back up above this high of day here if
this can't make a move towards that $9.00 area that's a great indicator that
this is probably gonna trend lower from there watching the 870 area buying out
those support areas shorting out those resistance areas here but following the
trend overall trading the trend here and that's really what worked out here on X
and 18 not a crazy mover not a wild mover by any means but still a great
opportunity here going short at 890 couldn't cover it for a full dollar
profit there as this went lower and it's really breaking through that support
area every time we broke through support it moves lower finds the next support
area and then kind of consolidates there and moves lower from there so we get
that 8:30 break we pull right down here to the 807 which was earlier support
once that we get that balance get shorts covering there again
we bounced up here just not getting over that 20 EMA using that 20 EMA as a kind
of trend overall to look at here but you can see very clearly the trend here so
you don't need really crazy volatile stocks every single day you seem to
follow the trend sometimes xn ET making you know a dollar move from the 8 dollar
area upset nine dollar area and then back down you could trade this both ways
you could trade it on the way up cut rate on the way down but the key here is
to look for these trends being able to identify the trend being able to
capitalize on the trend here we got the 890 area earlier in the day we were at
that 898 area not going higher we pulled back got stuck at 8 9 again that's a
clear indicator okay that's a good time to short
with my stop-loss at high of day I'm risking 10 cents for that possible move
down here to 870 or 858 30 area which would have been a great risk reward here
on X in ET I went short there at 890 a thousand shares covering my first 500
here at the 850 area which was the half dollar thinking ok half dollar it's
probably gonna bounce either way just to find some support
there which it ended up kind of bouncing a 50 for a little bit and then pulled
back 830 area I took profit there I was up 60 cents I'm not gonna be greedy
but really that move was the 8 dollar area down there to 790 beautiful move
here on xn ET and you can see how this overall trend just worked out perfectly
every day there are stocks like this that go up you know 10 20 % they find
the top on the day and then they start moving lower so you can find these
stocks you can look for these stocks that have these big moves in the morning
they end up peaking out the buyers are gone the traders are gone the end of the
day is coming and you start getting the fade so when these stocks jump up big
they pull back and they can't get back up at a high of day you can have a lot
of people piling in their short you know the shorts piling in here at 890 area
cuz they're saying okay this is not getting back to high of day this is not
having the explosion that we wanted it's not trending higher anymore it's having
trouble there 890 that's a great area to short it
you could have shorted here below this 870 area again if you're thinking okay
870 support I'm gonna wait for this to break I'd other sort into that strength
there at that resistance area there at 8 9 he's shorting into these two candles
here 890 err shorting there and looking for
that pullback if this would have bounced off 870 again I probably would
cover everything there but instead we ended up pulling on down through there
down to 850 area so kind of going into that trade knowing there's a trend there
identifying the trend seeing that trend in the morning going higher but then
seeing that same exact trend moving lower so once you broke that overall
trend going up now it's time to think okay we're not going higher we're having
trouble is this a possible short but once this could have make a new high
once that got stuck there at 890 it was clear that this was probably gonna try
to lower in there