Knowing the trend and trade with the trend

Yesterday I have covered Nikkei 225 using our *PPTA trend analysis.


I shall do one for today as well, still using Nikkei 225.


Trend is still down -- Pink below purple belt, our focus should be to look for short opportunities.


This round, the example is using a slightly experience Nikkei trader using 6 lots for every trade entry.


Market open and immediately given a spring sell signal, unfortunately, this trade failed. Our traders are all using "hard stop" rule! This trader loss Yen 120,000 or ~US$1,056 for this trade.


Get ready for the next signal. Market gave us another spring sell signal almost immediate after the first trade being stop out. This time, this trader was rewarded with Yen 195,000 or ~ US$1,716.


From 7:45am market open to 10am, we have a total of 6 trades opportunities. Out of the 6 trades, 3 failed. What is the P&L?


This trader has a profit of Yen 150,000 or ~ US$1,320



Nikkei225 from 7:45am to 10am

Let's continue from 10am to 2pm. Still having the same focus. Pink below purple belt. Look out for short opportunities.


We can see that there are 5 short opportunities. Out of the 5 setup, 1 failed.


Total gain for this round: Yen 345,000 or US$3,036.

Nikkei225, 10am to 2pm

Total income for today: US$1,320 + US$3,036 = US$4,356


Morale of the story: Know the trend direction, swing in the trend direction. There bounds to have trades that get stop out and incurred losses. But that is part and parcel of trading.

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