Focusing On The Trend and Market Cycles

What you’ll learn?

1. Trading with the trend across multiple timeframes, focusing on the direction of the higher timeframe
2. Using moving averages, especially the 8 EMA, to determine trend direction on any timeframe
   
   • 8 EMA rising = uptrend, 8 EMA sideways = range, 8 EMA falling = downtrend
3. The 8 EMA of a higher timeframe gives the general trend direction of the bands on a lower timeframe
4. Using the slow stochastic indicator to help with timing entries/exits based on market cycles
   
   • Look to buy near cycle lows and sell near cycle highs
5. Confluence of bullish factors provides high probability setups, e.g.
   
   • Bullish engulfing candle
   • Price reclaiming 8 EMA
   • Cycle turning up
   • Uptick in momentum
6. Best times to trade are when bands are expanding, harder when bands are tight
7. Cutting risk when the trend breaks down is important for capital preservation
   
   • Can always re-enter when trend re-establishes
8. Focus on capturing the “meat” of the move, not perfectly timing tops and bottoms
9. The trend is your friend until it’s not – use EMAs to identify trend changes
10. Combining EMAs and stochastics provides a powerful and simple way to analyze trends and time entries/exits

The key overarching points are to always trade in the direction of the higher timeframe trend, use EMAs to define that trend direction, and incorporate a cyclical indicator like stochastics to improve timing of entries and exits within the broader trend. Cutting losses when the trend breaks down is critical.

Content Chapters

0:04 – Trading across multiple timeframes, focusing on higher timeframe direction
1:28 – Using the 8 EMA to determine trend direction on any timeframe
5:06 – Applying the 8 EMA to identify trend direction and trading opportunities
7:32 – Incorporating the slow stochastic indicator for timing based on market cycles
10:48 – Analyzing a specific trade setup using multiple confluent factors
13:37 – Managing risk and re-entering trades based on trend changes
16:18 – Settings for the slow stochastic indicator
17:32 – Focusing on the overall trend and not perfectiming tops and bottoms
20:06 – Identifying the best times to trade based on band expansion and contraction
22:44 – Analyzing trend changes across multiple timeframes
25:11 – The importance of cutting risk when the trend breaks down
27:41 – Conditioning yourself to sell trend breaks and re-enter when the trend resumes
29:32 – Using moving averages to visualize and trade the trend
32:15 – Confluence of factors providing high probability trade setups
33:14 – Wrapping up: Focus on the trend, the trend is your friend