Trend Trading

Yesterday, I posted a chart showing how I identify an intraday trend using impulsive and corrective move.  I also utilise the VWAP for trend identification.

My trading style has evolved, and now I look to re-engage a trend (momentum) move on a retrace. That means I am looking for demand zones in an up trend or supply zones in a down trend.  I no longer try and determine where a trend is going to reverse as that is too difficult for me. Sam Seiden and OTA graduates are good at this, but, it feels like catching a falling knife for me.  So I prefer the safer method of trading with the intraday momentum.

However, I use Sam's teachings to determine the SZs and DZs in relation to the intra day momentum using my price action tools and the Better Volume indicator. I use several different chart types for this purpose.

The reason for my evolution was after I read a very interesting piece at another trading blog. Here is the link :-  http://www.stratsforextrading.com/dokuwiki/doku.php?id=path_of_learning:dr_joe

I only took one trade today (I only held for 4 pts), and this was based on the 5K chart after I had seen a RPM 2 bar trend re-entry at a demand zone.  It is a pity I cannot hold trades too long as price rallied over 20 pts after this.  I use 4 pts target as ES is mostly rotational, with the odd trend day like the last 2 days.  So 4 pts is usually a good trade.

Anyway today's price action was the total opposite of yesterday with a large spike down before the open (Non-Farm Payroll announcement) and then rallied all day after the open.

Here are some charts.