by Nico Isaac
Updated: October 10, 2017
What kind of trader are you?
Well, after a decade of trying on every different trading shoe on the shelf, our senior instructor, Jeffrey Kennedy, has found one strategy fits best of all: the trend trader "shoe." In Jeffrey's own words:
"Why attempt to pick tops and bottoms when there's only one of each. Within a trend, there are often multiple moves to take advantage of."
When Jeffrey looks at a market's price chart, he asks himself one question: "Is price action best identified as motive, i.e. trending, or counter-trend?" Each has its own dead giveaways:
Going further, if price action is motive, you have two choices:
Uptrend, defined by:
Downtrend, defined by:
Now, that's all good in theory. But what about in reality?
Well, here we look back at our July 13 and September 7 Traders Classroom episodes, in which Jeffrey scans the stock market stratosphere for a high-confidence set-up, and lands on the weekly chart of YY Inc., China's popular social media platform. (NASDAQ: YY)
In the July 13 Trader's Classroom video, Jeffrey refers to his handy check-list and identifies the larger trend in YY as up, designating recent "choppy, sideways" movement as a clear opportunity to rejoin the larger move to the upside.
Jeffrey also encounters a popular onus in YY's chart: price spikes. Often, these bursts in price make it difficult for traders to draw clear trendlines. But Jeffrey has a simple solution, much like the Olympic average scoring strategy of eliminating the highest and lowest scores and taking the mean.
Then, in the September 7 Trader's Classroom episode, Jeffrey revisits YY Inc. to acknowledge the stock's $30 price surge since first alerting subscribers to its uptrend back in July. He then explains how YY still had higher to go.
Press play on the following clip to watch and hear Jeffrey walk his subscribers through the bullish opportunity in YY:
The final chart shows exactly where Jeffrey's Trader's Classroom analysis of YY's uptrend occurred alongside its news-making rally for 2017:
Up or down. Commodities, stocks, metals, and so on. Jeffrey doesn't care what market or what direction. The only thing he's concerned about is does this price chart offer a high-confidence set-up? And those that do become the focus of his Trader's Classroom video lessons so you too can benefit from his carefully cultivated insight.