• Skip to primary navigation
  • Skip to main content
  • Skip to footer

866-878-9209

support@topdogtrading.com

  • Facebook
  • Twitter
  • YouTube
Top Dog Trading

Top Dog Trading

Learn Day Trading and Forex Trading

  • HOME
  • ABOUT
    • TOP DOG TRADING REVIEWS
  • RESULTS
  • PRODUCTS
    • COURSES & SOFTWARE
    • FREE TRADE STRATEGY
    • SECRETS
    • BEST STUFF
  • BLOG
CONTACT US

Trend Trading Indicators – The Best One & 3 Ways to Trade it

Trend trading indicators an absolutely critical part of trading, but which is the best one? Here's the one trend indicator I always use.

You are here: Home / Day Trading / Trend Trading Indicators – The Best One & 3 Ways to Trade it

May 17, 2017 by Barry

Trend Trading Indicators are a dime a dozen, but which is the best one?

It’s an important question because a lot of trading methods are based on trading with the trend, also known as “trend following.”

In this video you’ll learn the best of any of the trend trading indicators I’ve ever used specifically for day trading. This is so reliable that I NEVER trade against it!

Enjoy the video and please leave your comments below.

PLEASE “PAY IT FORWARD” BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons above, or at the very bottom of this article.

VIDEO TRANSCRIPT:

Welcome to this video on Trend Trading Indicators.

Actually today I am going to show you one of the most effective and accurate ways to measure a trend that’s not really an indicator, but an index. Now what’s the difference? I get that a lot. So lot of times, like I did a webinar and a video on the tick index before and even after saying that it’s not an indicator, people still kept asking me to send them the indicator. Well it’s not an indicator, neither is this.

So when I say it’s an index, as opposed to an indicator, what I mean is you’re not going to find this in a list of indicators on your charting platform. It is a, well it has a symbol. Similar to a stock. So here is the symbol. So you look it up a symbol and now you’ll have to ask your data provider, not necessarily your brokered firm or your software provider, unless they are all the same.

Whoever provides your data, they will have a unique symbol for this. And it may be the same as mine or might be different. I am using kinetic for my data providers. If you have kinetic, you can use that symbol right there. Otherwise you have to ask your data provider.

THIS IS AN INDEX, NOT AN INDICATOR

But basically what it is is it is a statistic that is measuring the volume of shares of a security that are traded when the price is increasing, and then conversely when the volume of shares of a security that are trading when the price is decreasing, and measuring that difference.

There are several versions of this, this is one of the New York Stock Exchange. And they have others that will measure the NASDAQ, or the Dow or the S&P. You can get more specific if you want to. For example if you are trading the E-minis, you might want to look at the one that specifically measures for the S&P. If you are measuring or if you’re trading the MQs, the NASDAQ, the Qs, whatever, you may want to use the one for the NASDAQ.

This is one of the most powerful things that I’ve ever come across. This thing is amazing. It is really, really good. I really encourage you to at least experiment with this because this has helped my trading tremendously.

Okay, so here is how we use it. First of all, I like to add a 15 exponential moving average to it. You can try it with the moving averages. I don’t think there is any particular magic to which one you use. But I will just get a big picture.

#1 WAY TO TRADE THE TREND TRADING INDICATORS

Number 1: Unidirectional Days.

We get this maybe once or twice a week. So this is an especially helpful for day trading. Maybe once or twice a week we’ll get a market that pretty much moves generally in just one direction all day.

Here is literally the open of the day, and that’s the close of the day. And as you can see, right before the close, it goes all the way down there, and then we get a little pop up in last 30 minutes. But basically it’s a unidirectional day.

This is not a day where you’d want to be taking long trades. This is a day where you’d do much better if all you did was short the market. And that’s the only trade you took was shorting the market. I always have this chart up every single day and I’m looking at this thing, and if the net volume is staying below the 15 EMA all day long, I’m just taking shorts.

In fact, I’ll tell you what, there’s some days that you can just take a short at the beginning of the day, and as long as this thing continues going down, you can hold at least part of this position for the entire day. And just have a huge winning day. And let me tell you, one day like that out of a week, can make you a lot of money. Even if that’s all you traded. That can make you a truckload of money.

Now because of the gyrations and oscillations of the markets, you want to use money management, risk management obviously. But might want to still keep a contract or two on small part of your position for the entire day. And just rack up those huge wins. That’s the first way to use it.

#2 WAY TO TRADE THE TREND TRADING INDICATORS

Now the 2nd way to use Trend Trading Indicators is to take trend reversal trades. But here is the tricky part.

This index look is going down down down all the day. Now you’ll look at the say, E-minis. Maybe they’re actually going up, they start a little uptrend. And you look at this index and it’s still going down. Oh, that’s a beautiful trade. That is the perfect time to take a trend reversal trend back down, shorting it back in the direction of this. This is more of a broad stroke indication of what the market is doing.

Even when this is going down the E-minis can, actually be making  higher highs and higher lows while this is still going down. So you look for those little uptrends occurring on the market and then take a trade reversal trade back in the direction of this index. And again those are fantastic trades.

Here’s an example of what I was just referring to where the net volume is up above the 15 EMA. Just along the whole way. However on the E-minis, we’ve got a lower low and another lower low. And so this looks like, ‘oh my gosh this is a downtrend. Looks bearish for the E-minis.’ But when you compare it with this, where the volume, the net volume is up. That means that this down move is probably going to be temporary.

Yeah you’ll get down moves, you will, you get moves against this. But there is more up volume or when price is increasing, there is more volume than when price is decreasing. You get still price increasing and decreasing, but which one has more volume behind it, So let’s follow the big volume. And not follow the small volume.Trade against the small volume traders. So this is one way to do that. And it works extremely well.

#3 WAY TO TRADE THE TREND TRADING INDICATORS

And here is the 3rd way to use Trend Trading Indicators. This is one way to help you stay out of choppy markets. So if you look at this, you’ll see that the net volume indicator, well index I am sorry. They all really stay above the 15 EMA or below the 15 EMA. And if you look at the angle of it, it’s not just straight up, or straight down like I had in the last 2 charts. It’s just pretty much consolidating here, and ah then we get a move up. But then it just comes back right down and consolidates.

That’s a day where there is no dominant volume to the upside or the downside. In other words of the market professionals, the big money hasn’t committed to bullish position or a bearish position and therefore most likely you are not getting any big follow-through to the upside or the downside. You can see that on the E-minis here too as well. So it follows just pretty much in a channel type of situation. There’s no big winners or losers to have here this day. They just aren’t existing because the market doesn’t provide that for you. So that’s the 3rd use of this and it’s how to stay out of choppy markets.

 

FREE GIFT!

PLEASE PAY IT FORWARD BY SHARING THIS VIDEO & ARTICLE ON FACEBOOK OR TWITTER by clicking one of the social media share buttons below.

Leave a comment below telling me what other information or other topics you’d like me to teach in the future.

Also I am giving away one of my favorite chart patterns that works today. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with first video.

Those interested in Trend Trading Indicators also showed in interest in this video:
http://www.topdogtrading.com/e-mini-trading-strategies-secret/

Subscribe to my YouTube Channel for notifications when my newest free videos are released by clicking here:
https://www.youtube.com/user/TopDogTrading?sub_confirmation=1

Day Trading,  Trend Trading,  Trends Day Trading,  day trading futures,  day trading strategies,  day trading tips,  trend trading

FREE TRADE STRATEGY!

You'll receive one of my favorite setups for E-mini trading, Forex day trading and stock market trading: "The Rubber Band Trade."You'll receive it on day 4 of my FREE 5-Day Video Mini-Course: "Make Money by Breaking Every DayTrading Rule You Ever Learned!"To get the setup for "The Rubber Band Trade," your subscription to my newsletter, special promotions from me and my valued trading associates, and the 5-Day Video Stock, Emini and Forex Training, simply fill out the form below.You'll instantly receive an email with the link to your first video lesson TODAY.

GET IT NOW

Footer

Top Dog Trading

866-878-9209

support@topdogtrading.com

15030 Ventura Blvd, #618
Sherman Oaks, CA 91403

Sitemap

  • Home
  • About
  • Best Stuff
  • BLOG
  • Contact Us

company

  • Terms of Service Page
  • Privacy Policy
  • Risk Disclosure
  • FREE SUBSCRIPTION
  • COURSE REVIEW

This site makes use of cookies which may contain tracking information about visitors. By continuing to browse this site you agree to our use of cookies. CLICK HERE to learn more. Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

 

RISK DISCLOSURE

 

These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Also, because these trades have not actually been executed, these results may have under-or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown.

 

IF YOU DO NOT AGREE WITH THE TERMS OF THIS DISCLAIMER, PLEASE EXIT THIS SITE IMMEDIATELY. PLEASE BE ADVISED THAT YOUR CONTINUED USE OF THIS SITE OR THE INFORMATION PROVIDED HEREIN SHALL INDICATE YOUR CONSENT AND AGREEMENT TO THESE TERMS.

 

The information contained on this site is for informational and educational purposes only. We are not registered as a securities broker-dealer or as investment advisers, either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Trading and investing involves substantial risk. Financial loss, even above the amount invested, is possible and common. Seek the services of a competent professional person before investing or trading with money.

 

Neither the information contained on this site, nor in any other place, is provided to any particular individual with a view toward their individual circumstances and nothing on this site should be construed as investment or trading advice. Each individual should assume that all information contained on this site is not trustworthy unless verified by their own independent research. There is a substantial risk for loss when trading securities as they are highly susceptible to the risks and uncertainties of certain economic conditions. For all these reasons and others, your use of the information provided on this site, or any other products or services, should be based upon your own due diligence and judgment of how best to use the information, and subsequently independently verified by a licensed broker, investment advisor or financial planner.

 

Any statements and/or examples of earnings or income, including hypothetical or simulated performance results, are solely for illustrative purposes and are not to be considered as average earnings. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance. There can be no assurances of future success or performance and we will not be responsible for the success or failure of any individual or entity which implements information received from this site.

 

WE DO NOT IMPLY, PREDICT, OR GUARANTEE THAT YOU WILL BE SUCCESSFUL IN EARNING ANY MONEY WHATSOEVER. IF YOU RELY UPON ANY FIGURES OR INFORMATION ON THIS SITE, YOU MUST ACCEPT THE RISK OF SUBSTANTIAL TRADING LOSSES.

 

Past results of any individual trader are not indicative of future returns by that trader, and are not indicative of future returns which may be realized by you. Neither the author nor publisher assume responsibility or liability for your trading and investment results. This site and all information therein is provided for informational and educational purposes only and should not be construed as investment advice. The author and/or publisher may hold positions in the stocks, futures or industries discussed here. You should not rely solely on this Information in making any investment. You need to do your own independent research in order to allow you to form your own opinion regarding investments and trading strategies.

 

It should not be assumed that the information in this web site will result in you being a profitable trader or that it will not result in losses. Past results are not necessarily indicative of future results. You should never trade with money you cannot afford to lose.

 

The information in this site is for educational purposes only and in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. There is an extremely high risk in trading. This information is provided “AS IS,” without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice.

 

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

 

  • Facebook
  • Twitter
  • YouTube

Copyright © 2022 Top Dog Trading. All rights reserved. Return to top