Simple Trend Following Strategy

Simple Trend Following Strategy

Hi my name is Johan Nordstrom from Trading Walk and in this video I'm gonna show you how you can find and trade a trend okay so to find and trade the trend we need to have a definition of what the trend is an uptrend is when we have higher highs and higher lows a confirmed uptrend is when we have two consecutive higher highs and higher lows a downtrend is when we have lower lows and lower highs they confirmed on trend it's when we have two consecutive lower lows and lower highs so it's pretty simple just what you want you don't want to use 100 indicators or a bunch of crazy stuff okay so looking at this EURUSD chart 1H we can see that from the bottom left here we have a high a low and when that high breaks we have a higher high we form low and when we break the top we have a confirmed we have two confirmed highs so two confirmed highs and two confirmed higher lows so in this stage we are in uptrend and as you can see we continue to form higher highs and higher lows until the high of this chart we blow out the last up thrust we crash down forming a lower low so this is just a lower low this is not an down trend yet but as you can see we pull back forming a lower high that is confirmed when that first low breaks so we now have two lower lows but we had doesn't have to lower highs yet so in many cases we would see an double bottom type formation in this excel from this example so anytime you can see that we get a lower low a break below the flow that reverses back quick and and continuing in the previous trend so two to trade shorts here we want to wait for a break that confirms two lower lows into lower highs and as you can see here we get a break and we have a consolidation with the higher highs and lower lows so there's a consolidation and since we're coming from a downtrend a newly formed downtrend the trend is likely to continue in the previous trend before the consolidation so we'll break down to new lower lows we don't get two confirmed higher highs and higher lows for a very long time as you can see here at 10th to 11th May we have a great setup you can find in my winning trading strategy eBook it's a high high low higher high but we don't have two confirmed higher highs and higher lows we have two higher highs but only one higher low and as you can see the trend continues down and still today we're in a downtrend the scenario now is that we have a possible higher low and that we will see a higher high but remember now if we get a higher high here we want a higher low again and confirmation of that higher high and confirmation is the break above so to trade this you want to trade short as long as the trend it's down my winning trading strategy is a great setup for trend trading it's actually a possible setup we have right here that we might get an entry and how you trade trend is you just trade in the direction of the trend until the trend ends thank you so much for watching this video please hit the like button and subscribe you can also connect with me on Instagram Twitter and Facebook and download my winning trading strategy until next time to your success


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