Capturing Trend Days
A trend day can happen either in the same or opposite direction to the prevailing trend on daily charts. A critical point is that the increased spread between high and low range of daily trading offers, many of which profit can be made in a short time.
Traders must understand the characteristics of a trend day, even if they are interested only in intraday scalping. A trader anticipating a trend day to change strategies, trading support / resistance and looking at the overbought / oversold indicators to use breakout methodology and flexible enough to buy or sell power failure. A trader caught will often experience the loss of its biggest trend day as he tries to sell strength or weakness buy prematurely. Because there are several intraday retracements, small losses can easily get out of control. The worst disasters come from trying to average losing trades in a trend days.
Fortunately, it is possible to identify specific conditions that tend to precede a trend day. Because this can easily be done at night, when the markets are closed, a trader can adjust his game plan for the next day and be ready to place buy or sell the rest stops at appropriate levels.
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