Trend days can be the best days for some day traders and the absolute worst days for others. Tuesday was a classic trend day where the market gapped higher and slowly and methodically pushed higher all day. I like to use the 20-period exponential moving average on the 5-minute charts to determine the trend. You can see the market never closed below it during the day and that should have kept trend followers long at least a portion of their trade for the entire day. (more)
Trend days are good when you have identified the trend on time. Of course it is possible with the right indicators, but some times people (me:) fail to realize it on time.
ReplyDelete