Join Fast Track NOW for the FULL ANALYSIS:

When trading we need to think about the trades that we can repeat many times per month and the trades that have the highest EV (expected value). These trades can be called "easy money." Although, anyone who has traded for more than 3 days knows that nothing in trading is anywhere close to "easy" but we all have personal biases towards trading styles that we excel at much faster than other styles. When we find that perfect price action setup combined with our own personal biases and find strong consistency, that is when we must dive in and understand how and why we catch those moves and more importantly, "How do we Repeat this?"

Trend Continuation:

The most simple setup that exists in large cap trading right now is Trend Continuation trading. The reason why this is so elite in terms of easy money is because when trillions of dollars must be liquidated out of the market due to the bear market. This bear market is occuring for many reasons but mainly because we are trading in a data driven fed tightening cycle. The key to this cycle is Data Driven. The fed is no longer using forward looking indicators to make decisions about tightening so instead of predicting they have stated multiple times that they are doing "Data Driven" analysis. This means that we have the fed using a lagging indicator. A lagging indicator is anything that tells us information about the economy that has happened days, weeks, or months ago. An example of this is CPI information. CPI is the Consumer Price Index which tells us how much inflation the consumer is experiencing in the last month. The reason why this is a lagging indicator is becuase it is information about the previous month, not the current month. When we get information like this it commonly causes panic in the markets because participants know that since the fed is data driven we can expect them to be even more hawkish in the coming meetings. There are many examples of lagging indicators and "shock" market events. Most notible include CPI, FOMC, PPI. I will give examples of each below. 

    - When CPI occurs we see huge directional moves in the SPY and QQQ

    -This allows us to take high conviction trades that follow the trend of the SPY 

Example:

 $SPY 1d:5m (Day of CPI August reading)

$SPY 1d:5m (Day of FOMC Meeting)

$SPY 1d:5m (CPI July Reading)

I will create a full analysis on my main portfolio page Colby Warshel @Disciplined_Daytrader (tradejournal.co) 

This will include: How to Trade these Patterns