4 steps, how to trade with New Trend method
As I have wrote, my trade method New Trend gives me the great signals to order to buy or to sell. Now I am going to tell you, how exactly works New Trend method
Step 1
We have to find some market what we want to trade. My favourite commodity is corn so I am going to describe New Trend on it.
Step 2
We have to find trading month which is good for us. It depends on the number of trades open during the trading days – volume and open interest . If volume/open interrest is not low, something about 10 000 trades open during the day and higher, trade month is good to trade.
Step 3
Here begins the New Trend. It is based on %R and moving average indicators. Let`s show it.
If moving average (settings depend on the commodity, I usually use 34-day moving average) shows some trend - bearish or bullish - it`s time to prepare for trade.
Step 3.1 - bullish trend
Moving average is going up and we have to find some %R signals to this trend. If chart bars give us some highs and lows to bullish trend, it is time to wait for another %R signal. You can see waiting interval (highs and lows mark by yellow lines) and buy order on the picture below.
Summary: if both of the marked lines (highs and lows) are the sime bullish trend direction like trend line (moving average), it is great time to wait for another %R indicator crossing up 20% (-80%).
Step 3.2 - bearish trend
Similar situation like in bullish trend, but trend line (moving average) is going down and both of the marked lines too. You can see it on the picture below.
Step 4 - training
And it is all about training. Good luck.
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