Trend Trade Rules- "The Foundation"
Exact setups- precise high probability trading with the trend
There are 3 simple rules that you must follow at all times when you are trading Nexgen's T3 Fibs ProTrader and executing trend trades. They are 1. TRIGGERS 2. TERMINATION 3. ENTRY If divergence is true before entry, use the market flow signal to time the entry. Make sure you write these rules on your charts as or after you make the trade. Annotations on your charts will guarantee that you are following the rules.
In the following picture, you will see the general look for the trigger lines on the larger chart before taking a trend trade on the smaller chart. (this is RULE #1) See termination condition section for rule #2.
Learn the trigger lines looks for when it is OK to trend trade.
focus on 5-1 small trigger LOCATION + 8-range trigger direction when doing trend trades on 5-1 chart
When you put the rules in place with strong trigger lines on your 13-2 and 8-range charts, in combination with large triggers and entry areas on the 5-1 chart, you will easily spot the winning trend trades.
perfect triggers and areas for a trend trade long
You will see the same look, over and over, every day and become consistent with trend trades
The following video takes you through the process of executing a trend trade using Ninja Trader.
How to execute a trend trade long (trade shortened for training purposes)
How to execute a trend trade long (trade shortened for training purposes)
How to execute a trend trade short. Market flow enhanced-(shorted for training purposes)
The following "quick start" classroom video recording includes all key concepts for new users.
quick start classroom recording for new users that cannot attend classes
The following pictures are examples of the trend trading rules. Notice that the charts are annotated. Nexgen students should do this on every trade. The easiest way to train a new trader is visual. You must recognize the trade look and not take any trades that do not match the following looks. See below.
trend trade long
trend trade long
trend trade short
trend trade short
trend trade short
Waiting for a market flow signal when there is a divergence from a pivot high or low is a very important entry technique that will slow your entry down. This is covered in great detail in Step #4 education.
waiting for a market flow signal
Just as, if not more important, is to know when NOT to take a trend trade due to a termination condition. In the following examples, NO TREND TRADE SHOULD BE TAKEN due to termination being true.
Watching 13-2 Trigger Lines (large) as added help for trend trades is very valuable. If there is no trigger line help for the trade, time must be spent evaluating all charts and triggers to determine probability.
large trigger help for trend trades
If there is no large trigger line helping your trade, you must then evaluate all charts to determine probability. NOTE: if your plan allows you to take medium probability trend trades, focus on your management. The following chart depicts a complete analysis of what is helping or hurting the trend trade that does not incorporate the 13-2 large trigger lines.
using all charts to determine probability for a trend trade
If you opt to take medium probability trades, notice the management of the stop behind a market flow reversal bar to limit risk.
limiting risk with medium probability trades
manage lower probability trades tightly
In the next picture, sometimes the market will give you a second chance at the same trade after divergence, and the trigger lines roll. In addition, notice price was at the top of the strong up large triggers on 13-2. This is true when you see a gap to the large triggers covered in step #1 of the education​
second chance at trend trade with better conditions
you can also search our YouTube channel for "TREND TRADES" and get more video content than you can digest in a month!​
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