When stocks are trending up, trend traders should be buying into these trends.
Our favourite indicator for identifying trends may come as a surprise to some traders. It is not RSI or MACD or Stochastic or anything similar to that, in fact it is good old fashioned breakouts. When price breaks out of a range, this is our first indication price is moving into a trend.
Due to fake breakouts we often filter these moves using the Dynamic Trader criteria. Once we are happy that the breakout maybe sustained, we will look to confirm the trend and buy at breakouts (or breakdowns in downtrends).
The stocks in this video have been mentioned many times while the trends have been in play.
Below is a screenshot of DD. Price has gapped up twice in recent days and is now above the resistance level. Before we can enter this trade we want to wait for confirmation using our criteria. One of which will be we do not want to see price dip below support (previously resistance).
Good trend trading…