Easy 3-Step Trend Cycle Strategy For Beginner Traders

For nearly two years, I struggled with identifying reversals and pullbacks.

I didn't know whether I was trading with the trend or against it.

I wish I had learned my own trading decisions would be built around the 3 cycles of trend.

Trend Continuation

The natural flow of price movement. Years ago I didn't understand the trend, my friend. This statement revealed I should focus on 1 general direction to enter my trades vs trading in both directions simultaneously.

Retracements

The pullback against the natural flow of price movement. When I realized pullbacks were ballgames for countertrend traders, I found I was losing my trades because I was countertrend trading.

It's safe to say I don't do that much now.

Reversals

The trend switcher. I made reversals my friend instead of my enemy. When price reverses, I'd generally get stopped out and trade the opposite direction until I realized that was what I needed to do.

So now, I use the reversals to trade the direction I trade-in.

Stop losses feel good when they are hit, but let it tell you to reverse the direction of your trade-in.

So, my trading friend, keep the trend cycles simple. You'll make better trading decisions if you know the cycle price is moving in.

-Shaquan