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Trend Trading System

July 31st, 2014

We investors have to deal with a number of
dilemmas—which many times force us to make some very difficult choices. The beauty of using a trend trading system is that you can avoid having to deal with too many dilemmas. And, risks are limited to the cost of the spread, plus your profit potential has no limit.

Trend Trading System

In Chuck’s video, Profiting in a Volatile Market with Spread Trading, he shares how investors can avoid losses by following his 3-Step Strategy, which includes (1) developing a price trend; (2) confirming a price trend; and (3) selecting an opportunity price using the trend trade indicator, the Keltner Channel.

Watch video to learn more:

Keltner Channels

Similar in practice to Bollinger Brands, which uses standard deviations to set trend trade bands (or bandwidth); the Keltner Channel uses an Average True Range (ATR) to set its channel distance (or width). It has an investor place trend trade lines above and below an exponential moving average to help determine a number of factors. Factors such as: whether a stock has been overbought, hit its oversold levels, could anticipate a reverse, or could be ending and approaching a new trend that is important to spot. Keltner Channel’s trend trade parallel lines are designed to follow price action and serve as a helpful trend trading strategy for investors. For example, a downtrend indicates the channel is moving lower, while uptrend means it’s moving in the opposite direction and “flat” means channel is moving sideways. All of which, offers a sound trend trading system that you can lock into—and be profitably positioned to reap its rewards no matter what happens to the underlying stock.

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