The Trend Is Your Friend & How to Profit from it
#467: The Trend Is Your Friend & How to Profit from it
In this video:
00:26 – Trading the trend
01:15 – Why did I take this trade on Silver?
02:57 – Can you trade reversals?
03:45 – One of the best FX brokers is Blueberry Markets
04:57 – Ask me questions
05:25 – Follow my free daily strength & weakness analysis
The trend really is your friend, so how do you profit from it? Let’s talk about that and more right now.
Hey there, traders. This is Andrew Mitchem here at The Forex Trading Coach with weekly video and podcast number 467.
Trading the trend
You’ve all heard the phrase, “the trend is your friend.” It certainly is. But how do you trade the trend? How do you make it your friend? How do you profit from it? That’s the most important thing, isn’t it? So I want to give you some actual live examples.
I was just putting everything together to make this video for this week, and right behind me on our forum site someone about 10 minutes ago at the top of the hour wrote and said, “There’s a great looking sell trade on silver on the one hour chart. XAGUSD on the one hour chart.” Went and had a look at my charts, go absolutely this is an amazing trade, taking it. It’s over my shoulder here, it’s dropping right now and it’s in profit already and I only put the trade on a few minutes ago.
Why did I take this trade on Silver?
Why did I take the trade? Well, as I mentioned the trend is your friend and it really is. So for this week I’m looking at shorts on silver against the US dollar. For today, I actually wrote a specific trade on the daily chart selling silver. When we also looked at the 12 hour charts, we had a fantastic setup. Guess what? Selling silver. Now, right now just a few minutes ago, there is a sell trade on the one hour chart on, you guessed it, on silver. So I’m trading with the trend.
Now if you look at the one hour chart for the last number of hours, it’s actually pulled back upwards. So there’s been quite a little bit of bullish momentum. But where did it stall? It stalled exactly at the $20.00 level, a massive, massive round number for silver. It stalled there, right on 20. It’s had indecision on the previous one hour candle, and the one hour candle that’s just closed just a few minutes ago, right behind me right now live, it has formed a strong bearish candle. We’ve had hidden negative divergence from off the middle Bollinger band below the pivot point, all things that we look for as well. Trend line breaks. Everything is on that trade right now.
But more importantly… I suppose, just as importantly, we have the setup on the one hour candle, but we have the short position there. We already have a short on the 12 hour and the daily. So in other words, we are trading with the trend.
Can you trade reversals?
Yes, you can take reversal trades and yes they look really quite cool and really quite dramatic on your charts. Yes, you can show a massive, massive down trend and you’re taking a buy trade against it, and yes they can work. But would you much rather take a continuation trade when you have everything all lining up. The bigger picture is lining up. You’ve seen that little pullback on the short time frame and then it’s the opportunity to ride it down again. That has to be the high probability way of trading. Right now, I’ve got a decent red candle behind me live. Right now the trade’s in decent profit.
So that’s how you can use the trend to make it your friend.
One of the best FX brokers is Blueberry Markets
Now talking about friends, if you want to a decent broker, and you want to go somewhere that’s friendly, and you want to go somewhere that’s good, and you want to put things in your favour exactly like trading. Do yourself a favour, go and have a look at Blueberry Markets. I’ll put a link to them on this page or podcast, whether you’re watching, listening. You can go and check them out. You’ll notice that last week I sent through an email, if you’re on my database, regarding Blueberry Markets and some of the great feedback that I’ve had from clients and people who are not clients through The Forex Trading Coach who have gone to Blueberry Markets, and the feedback I get without exception every time is fantastically positive.
So if you’re looking for a broker, go have a look at Blueberry Markets. They’re over in Australia. If you’re in America, sorry you can’t trade to them. But from pretty much most other countries around the world you can. If you are in the States by the way, the broker that we do recommend if you’re in America is OANDA. Have a look at OANDA, they’re a very good broker as well. But for everybody else, have a look at Blueberry. That’s it for this week. I hope you’ve enjoyed watching or listening.
Ask me questions
Any other questions that you have just send me an email. I’m more than happy to answer questions for you, talking about specific trades or topics that you have that you’d like me to discuss. Don’t forget, this is number 467 on my website, on YouTube, on whatever podcast you’re listening to. There are 466 other videos and podcasts just like this containing tonnes of really valuable and free trading information.
Follow my free daily strength & weakness analysis
Now talking of free, don’t forget that I do post free of charge every single day a very basic, simple form of what my clients get. But you can view it. It’s my daily analysis the strength, the weakness analysis, where you can trade with the trend, my friend. I’ll see you next week. I’ll also put a link to that on here as well. Bye for now.