10 Trend Trading Strategies
A Deep Dive Into Market Momentum
Home » 10 Trend Trading Strategies
Trend Trading Strategies
Trading with the trend means the wind is behind you.
Momentum is already under way, the price action is already showing a supply demand imbalance. The market is in price discovery mode.
“A rising tide lifts all ships” goes the saying…
If you can find a strong trend, the chances of it continuing are high.
The challenge comes in finding a good spot to take the trade entry. A place where you can put a reasonable stop loss and give yourself a decent risk to reward ratio on the trade.
In the webinar above I explore ten different trend trading strategies for you to explore.
I include detailed chart examples of both winning and losing trades.
Some are simple, some are a bit more nuanced…
1st Pullback Trade
Trade thesis: Buying a pullback after an initial drive, looking for a continuation of the trend
Entry: On a pullback to a 20 period moving average
Stop idea: 50% of the initial drive
Target idea: 2:1 RvR
Trend Line Trading Strategy
Trade thesis: Buying a pullback to a channel/trend line.
Entry: On a touch of the lower channel
Stop idea: Below the last channel touch low
Target idea: 2:1 RvR
Bull Flag Pattern (not a failed bull flag)
Trade thesis: Buying a flag after a drive
Entry: On the break of highs
Stop idea: Below the flag low
Target idea: 2:1 RvR
Range Break Fake Trade Setup
Trade thesis: Buying a breakout of a range after a false break lower.
Entry: On the break of highs
Stop idea: Below the range low
Target idea: 2:1 RvR
Stochastics Trade - 3 Minute Cycle
Trade thesis: Buy the first oversold condition on a 3 minute chart during an uptrend
Entry: As price comes up from oversold
Stop idea: Half of swing high to low
Target idea: Prior high
Afternoon break
Trade thesis: On a trend day buy a breakout in the final 3 hours of the trading day
Entry: Break out of highs
Stop idea: 25% of daily range
Target idea: 50% of daily range
Opening Range Breakout
Trade thesis: Buy a breakout in the first 15 minutes of the trading day
Entry: Break out of highs
Stop idea: 50% of range
Target idea: 100% of range
Click here for a more detailed breakdown of ORB.
Range Breakout Trade
Trade thesis: After price breaks highs and consolidates buy a breakout above the consolidation zone
Entry: Break out of highs
Stop idea: Below consolidation range
Target idea: RvR 2:1
VWAP Trading Strategy
Trade thesis: After a trending morning, price comes back to test the VWAP
Entry: Long on test of VWAP
Stop idea: 50% of VWAP > high range
Target idea: RvR 2:1
Wick Through Price Support
Trade thesis: Price tests support, breaks, but recovers forming a wick
Entry: Break out of highs
Stop idea: Under the wick
Target idea: RvR 2:1
These trend trading strategies have hopefully inspired you to dig deeper. Maybe some of these can be modified for your own trading plan. (Explore my create a trading plan post)
As with all trading strategies, market context is so important. When you use any strategy depends on conditions.
- What was prior price doing?
- Any economic data coming up?
- What’s the higher time frame chart looking like?
Final things…
If you want to get a copy of the slides in PDF format, sign up for my daily email and reply “Slides” to any of the emails and I’ll make sure you get a slide pack.
What next?
Why not explore my other webinar: 10 mean reversion trading strategies.
Or if mindset is a challenge then this trading psychology deep dive will help