Trade the Trend

Excerpt from today’s premium report:

Here's what we said about Zillow (Z) this weekend, with emphasis on the bold print.

7-7 While the bigger picture chart shows an issue that broke its green uptrend off the Nov. lows, moving lower, the shorter term shows it building a bear channel (pink). Even shorter term the blue line shows a pullback off highs (POH).

So Z could retest its highs; a downside break doesn’t happen till it breaks the pink line to the downside in tandem with the indexes.

Here is the chart from over the weekend:

Here is today’s (7/8/13) chart showing the blue line POH upside crossover.

Now take a look at a 10-day one minute chart.

See that blue Pullback Off Highs (POH) line? It's all you need to know when it comes to trading on the long side.

This is a good example of trends within trends in multiple time frequencies, and how to use them. 

For example, 300 shares was worth about $400 in about an hour. A day trader or scalper could be done for the day. Of course, not every trade is going to show you a $400 gain like this one did.

But what if all you did is look for trade set ups like this and got a measly $150.00 per day and got out? That' $750 a week, $3,000 per month or $36,000 a year – in a perfect world. Of course, not all the trades will go your way, and in that case, the strategy we use is to get out early. We go home flat at the end of the day and don't have to worry about gaps the next morning. 

THAT is our day-trading plan, and we will teach you to implement it. We wait for high probability set ups, trade a conservative number of shares, don't let losses run away from us, and get out before the day is over.