Look for a series of higher highs and higher lows on the price chart.
Enter a long (buy) trade when the price makes a pullback to a higher low, anticipating that the uptrend will continue.
Place a stop-loss order below the most recent higher low to manage risk.
Take profit when the price makes a new higher high.
Downtrend Trading:
Look for a series of lower highs and lower lows on the price chart.
Enter a short (sell) trade when the price makes a retracement to a lower high, anticipating that the downtrend will continue.
Place a stop-loss order above the most recent lower high to manage risk.
Take profit when the price makes a new lower low.
Enter a long (buy) trade when the price makes a pullback to a higher low, anticipating that the uptrend will continue.
Place a stop-loss order below the most recent higher low to manage risk.
Take profit when the price makes a new higher high.
Downtrend Trading:
Look for a series of lower highs and lower lows on the price chart.
Enter a short (sell) trade when the price makes a retracement to a lower high, anticipating that the downtrend will continue.
Place a stop-loss order above the most recent lower high to manage risk.
Take profit when the price makes a new lower low.