{"id":21008,"date":"2023-06-28T07:30:18","date_gmt":"2023-06-28T11:30:18","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21008"},"modified":"2023-06-28T07:30:18","modified_gmt":"2023-06-28T11:30:18","slug":"following-up-on-a-powerful-trend","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/following-up-on-a-powerful-trend\/","title":{"rendered":"Following Up on a Powerful Trend"},"content":{"rendered":"

Back on May 3, I wrote about how I keep my trading process as simple as possible<\/a>.<\/p>\n

For example, I don’t clutter my charts with a ton of indicator studies and trend lines. This keeps my price charts highly legible and easy to understand.<\/p>\n

One look at a chart is all you should need to be able to identify the main trend and some key price levels the market is likely to test.<\/p>\n

Simple price charts also allow you to change gears quickly from reading the market to trading the market.<\/p>\n

On May 3, we looked at a price chart of Expeditors International of Washington (EXPD) as a case study.<\/p>\n

Here’s a version of the chart that I shared back then.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

This chart clearly shows how the trend in EXPD was down from May to September of 2022.<\/p>\n

A series of pivot points moving in one direction is a great way to identify a trend. We can see how from May to September the pivot points were all moving lower together.<\/p>\n

But in November 2022, EXPD broke the series of lower highs and lower lows. This was the first sign that EXPD’s trend was about to change.<\/p>\n

It was this break in the structure of EXPD that put me on alert to look for bullish trade setups.<\/p>\n

<\/p>\n

\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

That’s why back on May 3 I wrote, “The actual trigger for me to get into a trade could be a bull flag, a falling wedge, a moving-average crossover, or any other number of setups.”<\/p>\n

As it happens, EXPD ended up tracing out a bull flag over the month of May 2023. A bull flag is when price action trades neatly within a descending parallel channel after a strong move up. Once prices break out of the channel, the flag is complete.<\/p>\n

You can see this bull flag in action on a four-hour chart of EXPD below:<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

As you can see, EXPD traded within the boundary lines of the blue flag (blue lines) between May 5 and May 31 before breaking out on June 6.<\/p>\n

This is a great example of a powerful trend continuation setup. After breaking out of its bull flag, EXPD rallied over 4% in just 10 days.<\/p>\n

We now have a fresh higher high in the stock. If EXPD establishes a new higher low, then there will likely be another opportunity to trade the stock to the upside.<\/p>\n

On the other hand, if EXPD breaks down and the uptrend gives way, then there may be opportunities to play the stock on the short side instead.<\/p>\n

Either way, it’s important to keep an eye on the stock’s price action, particularly on what new pivot points will be established.<\/p>\n

Happy trading,<\/p>\n

Imre Gams<\/p>\n

<\/p>\n

\n

READER MAILBAG<\/h2>\n<\/div>\n

Is there a trend you’re currently watching on a particular stock?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Back on May 3, I wrote about how I keep my trading process as simple as possible. <\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21008","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21008","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21008"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21008\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21008"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21008"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21008"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21008"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21008"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21008"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21008"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}