Trend Trading Tips for Swing Trading and the Day Trader

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Regardless of your trend trading time frame, whether you’re a day trader, do swing trading, or even investing, the classic definition of an up trend is:

Higher Highs and Higher Lows.

The classic definition of a down trend is:

Lower Highs and Lower Lows.

Every day trader knows this to be true … except for one thing: IT DOESN’T WORK!

There are several problems with this trend trading approach which I address in this video. I’ll also show you how I address these problems in my own trading.

However keep in mind that no matter how you measure trend, it’s only one “energy” on the chart. And I don’t care what indicator or chart pattern you use – one energy is not reliable enough to trade reliably (even if that energy is the venerable trend).

Personally, I won’t put my money at risk without getting the odds on my side with FIVE energies! To learn how I do that, you can view a recording of a 1 hour webinar I did here: The 5-Energies Webinar.

But first, enjoy this brief video on how to do trend trading.

After you watch the video, please leave your comments below.

34 COMMENTS

  1. Great explanation!! Its good to see that there are a lot of quality posts out there. Forex Trading Rules

  2. Dr Burns,
    I found out about your websites from an ad that you placed in http://www.livemocha.com.

    Your free videos and podcasts are very interesting.
    Once I finish your 5-part free videos I will consider buying some of your training material.

    Thanks for sharing!
    Rene

  3. Barry, can you please publish the oscillator/indicators you use? I use Fidelity active trader pro and cannot find the “cycle indicator”, but there are others such as the CCI, ADX, etc. Of course the MACD and MA’s are omnipresent as well.

  4. Barry:

    The short video on market trends is a great primer and as always, you take the lead in exposing typical faults and fallacies in thinking and approaches. Great job and Merry Christmas.

    Gordy

  5. Hello Barry,

    Thank you very much for your video info.
    The 5 Energies webinar is the best webinar I did learn from so far and use for my research before placing each trade. I can’t thank you enough for sharing with me your knowledge.

    Natalie from Sydney

  6. Hi Geoff,

    I don’t show support/resistance levels in that video simply because of the size limitations of the videos – so I only focus on one issue at a time. I agree that support/resistance is important and use it in my trading. But one could also ask why I don’t address the issue of multiple time frames, momentum, cycles, which time frames to use, which markets are best to trade, etc. Can only address so much in 10 minutes!

    Barry

  7. Hello Barry,
    I liked the video. Found it informative, but there is one point you ignore or omit which I don’t understand. Why don’t you show/use resistance and support levels? until price breaks through a resistance or support level, I won’t touch it. Keeps me out of a lot losingn trades.

    Geoff Deane

  8. Great videos Barry.Trading higher times like the 4hr ,daily and weekly are more reliable in my opinon but of course your stops are larger and quiet a bit of patience.50 sma is very good for trend direction and watching for double and triple bar tests in a trend with energies aligned.For example the nzd/usd had a set up at 7296 going short with a triple daily bar test of the 15ema- currently i’m in profit here.What is really nice is when the daily and weekly together aligned below 20 and above 80 in the direction of the trend.This is just my experience close to 4 years of trading.

  9. Hi Barry,Thanks for the vidio,It was very informative,it answered a lot of questions for me,peaks and troughs always confused me,not now Regards.

  10. Hi Verena,

    Thanks for the comment and the question. There are several things on this topic:

    1. You don’t need all 5 energies every time. You only need most of them. You can certainly take trades with 4 out of 5 energies aligned.

    2. If you want more trades per day you can go to a shorter time frame. I trade a 300 tick chart on the NQ and 1,000 tick chart on the ES and find plenty of trades most days … and the days there aren’t many trades are the days the market is just floundering around and it’s best to stay out anyway.

    3. Realize that most of the time the market is in a random walk, not setting up any high probability situations. See my article on this here: http://www.topdogtrading.com/?p=403

  11. Hi,

    I feel I’ve found more than a mentor in you…
    I’ve found a Quantum Mentor… you really get nano!

  12. Hi Barry,
    thanks a lot for this new video on trend, expanding direction over a certain time, as you taught in your 1 hour and/or 5 days free course. I always learn from your videos and appreciate your work. However, when I am daytrading there is hardly any set up that shows the alignment of your 5 energies, one or two are always missing. When do I not trade at all and when do I take the risk? thanks for your comments.

  13. This really makes a lot of sense.
    Having an unambiguous definition of the trend is essential when one is trading with trend signals.
    Knowing when there is no trend is equally critical. Your foundation courses explain this very well.
    Thanks Barry!

  14. Dr. Barry,

    I expected once the bill was paid the training was in the files…. Thanks for the many gifts of knowledge since I signed up.

    I enjoyed this video. The different presentation helped reinforce the much simpler guide. Higher high, higer low, lower high, lower low… a tounge twister I have not been able to understand and now I can see why!

    Thank you!

  15. Barry,
    I always enjoy anything you publish as it reinforces what you teach in your Top Dog courses. My trading has greatly improved since purchasing course 1 and 2. And I always try to look for the five energies to be in alignment before pulling the trigger.
    Thank you!

  16. Barry,
    Very informative presentation.
    I do agree that the more energies the trader applies, the greater will be his chances of success.

  17. Hi Barry,

    The Bulls and the Bears are masters of disguise
    A trend, like a friend, never lasts forever
    Enjoy the fleeting moment
    And when it has passed, move on.

    Geoffrey Salvage

  18. Thanks Barry, as always, good information and reinforces the importance of the 50sma, which
    I now use religiously. I have learned a lot from your resources.

    Allen

  19. Hi Dr Barry,

    Thanks for another free video. I love reviewing the data about the 50 ma and all the other energies. You have a much better definition for trend.

  20. Barry,

    I always enjoy and learn from your free videos. Your way of teaching methodologies make learning stock market trading tips easy and interesting. Thanks for what you do!

  21. I am very new in trading, but love your videos, they are simple to understand and don’t lead to confusion. Berry, thank you for your teaching!

  22. Video was good but since I do have course 1 & 2 it was not new info.
    I am looking forward for the advance course and I hope you devoted a section on Forex trading.
    Please let me know as soon as it is available .
    Thanks and happy holidays.

  23. Patrick, a “period” is whatever the time of one bar on the chart is. I use the 50 period simple moving average on all charts regardless of what interval they are – 5 min, 30 minute, daily, weekly, etc.

  24. Your video used 5 min chart/50 period. Is the period= days? If you trade off 30 min chart do you use diff period ma ? Thanks

  25. Barry,

    Thanks, simply an objective, consistent way to measure trend. I can see with this method, I will get a repeatable and correct assessment of trend. But, as you said, this only gives an assessment of trend and it not tradeable by itself. Thanks for the clarity this method provides for measuring and/or assessing trend.

  26. Thanks Barry, this is something I have been struggling to explain to my subscribers. This higher high, higher low fools many traders all the time. In your video it is very clear to see what the real meaning of trend is.
    I will relay this info to my subscribers.
    Cheers,
    Mark

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