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Trade Patterns Trend Counter Trend Exhaustion Reversal Strong Trend Strong Trend Reversal

 

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The ZoneTraderPro Strong Trend Trade

 

The Strong Trend Trade pattern occurs when the market has shown in the previous move that the market move was strong, and if the market is going to resume the trend it will most likely resume the trend from a minor level of support or resistance.

In the below example the market exactly hits the strong trend support level. This support level is not a buying opportunity, because the market is in a strong trend. It is only an area that smart money may start taking profit. Price will then trade to the minor resistance level, and the trend will resume. An "S" and a blue arrow will now print, indicating the strong trend short trade, which is good for 2.5 points.

 

 

What is important to know about this trade is that because of the strong trend trade comes from minor resistance, that will setup an exhaustion trade. Statistically less than 15% will make it any further than the blue counter trend support level, why is why the exhaustion trade works so well. Additionally the exhaustion trade commonly marks a market top or bottom, as it did in this example. That gives you two trades that made 7 points, and had no adverse excursion.

 

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