Trend Algo

Trend Algo - Example Trade and the strategy I follow.

How to use Trend Algo

German 30 - 1 hour Chart.

Step 1 - Find a good level in higher timeframes!

I have identified a 1- hour Demand Zone on 13 of November 2020. I mapped out this zone at that point.

A general strategy is to always look for long at these zones. (the first re-test is the best, a second re-retest can work, be careful on the third re-test), However, this time we had a Ranging market and I know that there is a high probability that the Demand Zone will work once again. Today (20 of November 2020).

1) My plan was to look for a long Signal in the 1 min timeframe when the price hits the zone.

2) The price came down to the zone and we got a Buy Signal (Trend Algo).

3) I followed my predefined plan and took the trade.

4) Banked some profit on the way up.

So in this case, Trend Algo gave me that extra confirmation to enter the trade.

Nothing magic with this trade, but it will work in most cases, 1) I have analyzed the market before I enter the trade. 2) I have a plan/strategy to follow 3) I'm using Trend Algo in this case as a tool to get that extra confirmation.